Price of a title search?

[Christina G.]

Hi all. Newbie q about title searches.

I just spoke with an overbearing realtor who told me 10 times that I can't buy a home from a bank for just what is owed on it. He also said there is no way to know about other liens against the property, and that a title search alone would be $900.

This sounds so wrong, 3 ways. A title search I thought would be like $100 to $150. 

A title search WOULD reveal liens against the property, wouldn't it? 

A bank CAN profit from the home sale? This seems wrong.

Can you tell me if he's right or wrong on these counts?

Thanks!

Christina

[Rich Hupper]

@Christina G. banks have very strict rules about their REOs. Have have certain brokers they work with for their REO property. Those brokers need to adhere to strict guidelines while marketing the REO. They are obligated to market it to the masses.

Most debt is owned by FNMA and some other huge banks. They do not deal with individual investors / buyers who want to buy their REOS, they give their REOs to local brokers who market them to the masses and look for the highest and best bids.

If you can find an REO owned by a small bank they might deal with you directly however most small banks sell their loans.

The best bet for you is find a homeowner who has equity in their property and is motivated to move. Motivation is the key, or distress. 

In my area if the homeowner is distressed the property will be distressed too and need work. 

Try to find someone going through a divorce. Their properties are usually still in good condition.