Problem With Title

Having a problem with title when trying to close a deal is the worst feeling in the world. If you do enough deals, you will run into title issues. The key factor is having the right title company to resolve it. People think that title companies are all built the same and this can't be further from the truth. Title is easy for any company to do when the transaction is very basic. The problems occur when there are things clouding title or odd forms of financing. This is when experience kicks in and becomes a factor.

An example of a title company with expertise would be one that I have dealt with for foreclosure auction sales. Because the deed doesn't record in some areas until 30 days after the title changes hands, there is a 30 day window of risk for a buyer. Most title companies won't take exemption to that gap of time. There are a few in the local market that understand the process very well and because they are experts in that area, they know the risks and close lots of auction properties with title insurance.

Investors have to be the most aware of the title company they are dealing with because on 90% of the deals an investor will do, there will be something odd on title that needs to be addressed. If the title company doesn't know what they are doing, you risk the entire deal blowing up. Be sure to put yourself in business with title companies that are investor friendly and really easy to work with.

Ian Walsh