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Updated about 12 years ago,
Issues with the Title
So I am in need of some opinions. I had a wholesale deal I was working and I am at a dead end. I dont like to give up easy, I have been trying to think of some other creative strategies to make this deal work. I hate walking away.
So basically I had a house under contract for 8,000 dollars. I had a cash buyer lined up for 12, 000. Everything is great right! Except that once the title company starts doing research on the title, it appears that the last 3 people who owned the house have never used a title company, done a title search or gotten title insurance. Basically back in the 70's theres a hole in the title. So we dont know for a certain period of time who owned the house. If anyone had purchased title insurance, it would fix this, but since none of the previous owners did, the only thing the title company is saying to do is have a attorney file a Quiet Title Action to fix it. What an attorney basically would have to do is send certified mail to the 4 owners of the house and they have 30 days from when they were served to say if they have any legal interest in the house. After the 30 days, the attorney goes to court, files the title action and the title is good. The issue is because some of the owners are going to be hard to find because they owned it 30 years ago, 5 attorneys have quoted us a price of 4-6k to get this fixed. I checked to see if there is any way I can do this without a attorney, unfortunately you have to have a attorney file this in Ohio. The seller and my end buyer are aware of the situation. I asked my seller if they would cover 2k of it, and I was going to split rest of it with my end buyer. However my seller wont fork out any money to get this fixed. They live out of town and are telling me they will give me money to just rent it out for them, instead of selling it.
The only other thing I can think of is to do a quick claim deed and disclose to a seller that the title isnt clear. But I'm not sure anyone will even go for that...Any ideas or thoughts?