All Forum Posts by: Nazar Trilisky

Thank you for the replies.

Ok.  Traditional route of purchase (contract, inspection, title check, escrow, ...) protects the buyer with title insurance.

When buying a foreclosure at an auction, the seller's honesty is less of a concern because it's likely an established bank.  You just have to insure the property and buy title insurance as soon as you finalize your winning bid.  Real estate companies that bid at auctions for you usually do a title search, but I don't know if they provide any guarantees or title insurance.

How do you folks who buy foreclosures ensure a clean title?  Doing a full title search on each property you bid on can be costly.  Scanning publicly-available deeds yourself may not be reliable enough.

Ok.  Looks like checking property records at the clerk's office and recording your deed ASAP are the main mitigation.

I suppose it would help to have a time window in the escrow agreement to let the dust settle bit after the deed is filed.

The risk is still there.  Property deed fraud is a criminal offense, so as long as the seller has net worth to lose, that should be a good discouragement too.

How can a buyer protect themselves from a seller who sells a property twice?

Recording a deed is not required by law, so a seller can write two deeds for the same property to two separate buyers, collect the money, and disappear.  Even if the deeds are recorded, there is a time lag to record them.

Is there a way to check for deeds that are not recorded with the clerk?

Will anyone in the Seattle area let a newbie volunteer with them or their Real Estate Investment entity in exchange for learning the trade?

I have the fundamentals of a real estate agent certification (books / meetups).  I work as a software engineer full time.  I've done a good amount of work on family homes and Habitat for Humanity projects to know home repair basics.

My goal is to get comfortable enough with the process and paperwork to buy a foreclosure with minimum overhead.

This is a consumer loan, not commercial.
This is rehab money, not purchase money.

The personal guarantee is a good idea: gives collateral.  Those grandmothers can be tricky  :)))

To answer my own "Aug 02, 01:29 AM" question:

yes, multiple liens on a property prevent a bank from giving a long-term loan.

A BECU representative said that BECU would have to pay off all private lender trust deed liens before the bank can give a long-term (15 to 30-year) loan against the property.

Is it true that having multiple liens on a property will hurt the chances of getting refinanced on a mortgage?

A specific example is a 4-family house that is on a short-term, bridge loan.  If there are five private, hard money lenders who would each get a deed of trust, then will there be problems getting a longer-term, lower-rate loan due to the multiple deeds of trust?

This would be a 2nd position loan.

I am not getting a personal guarantee.

Thank you for the answers so far.