All Forum Posts by: Jerry Cinor

@Jerry Cinor Everyone else already said it, but a title search will clear that up for you. I like to use lawyers for title searches.

Title Insurance costs more and takes more time. Even after my story, I'm still going to be doing an O&E search. It's just a risk of the business. Just like repeat BKers, reperforming borrowers that pay, but not well enough to sell the note, and lawsuits.

I think the scenario matters a lot here.  In Adams scenario, the mechanism of transfer was likely a quit claim deed done outside of escrow with no title insurance.  In that kind of scenario it is on the buyer to make sure they understand the lien situation.   In a standard real estate purchase and sale, the transaction is closed by a title company, a warranty deed is used, and the buyer would get a title insurance policy.  Title insurance is really the only way to fully protect yourself against liens that may not show up on title searches.

I've learned the hard way that there are generally two types of title searches. 2 Owner Search, which is what you'll be getting for under $100. Then the 40-year search, which are usually done with title insurance. 2 Owner Search checks the liens on the last two owners. For example, when I bought a CFD from Harbour, they checked that property for liens with Harbour and Fannie Mae, the last two owners. What was not picked up was the lien that was missed during the foreclosure of the third owner. That didn't show up until we tried to sell the property and had to get title insurance they did a 40-year search. That's when the lien showed up. Why didn't Fannie Mae see it? Because their attorney screwed up in the foreclosure. Why didn't Harbour see it? Because the title was transferred with a Quit Claim Deed.

So just know that going in, 2 Owner Search works, but not 100% of the time.

There are many title search companies in FL that can do this for you.  Check out Easy Title Search dot Com.  I think their O&E's are $55 per report. 

Do a title search. In CT the Attys do the title searches. I’m not sure about your state. It’s part of the closing process.

If you are starting out we always recommend you live within the same state as your investments.