Title insurance for sub to on VA loan

[Sean Wang]

I'm buying a property subject to the existing VA loan. Does anyone know if I can get a title insurance? The wholesaler said the title company will not be able to issue title insurance. Not sure why.

[Tom Gimer]

Quote from @Account Closed:

Quote from @Sean Wang:

I'm buying a property subject to the existing VA loan. Does anyone know if I can get a title insurance? The wholesaler said the title company will not be able to issue title insurance. Not sure why.

I'm not sure where you are located, but locally in Arizona, the Large Title Co I use will not insure Title on an FHA loan on Subject To. They tell me they get a lot of pressure from FHA or the boogieman or somewhere that they could lose the right to process FHA loans. No, it doesn't make sense to me so I can't explain it.

Their solution is for me to get a Title Report from them for about $"free", hang on to the report and when I sell they will issue Title Insurance for the new buyer.

Seems like trying to milk cats. Can it be done, sure, but does it makes sense? Not to me.


The report tells me what has to be cleaned up prior to closing, which they help me with, but they say they can't "insure" title. Crazy! I've done a lot of Subject To on FHA & VA loans as described and haven't had any problems.

Here's a post I did on Subject To that may help you stay out of trouble

Using Subject To, to Get "Free" Properties

https://www.biggerpockets.com/forums/311/topics/1060320-using-subject-to-to-get-free-properties-a-quick-guideline

This is a can they insure vs. will they insure question.... that's just a business decision for the title company. You actually need to investigate beyond recording info to determine the types of loans on title. What's the point of that if they're not being paid off?