When you buy a property that’s been foreclosed on, there are certain things that you must keep in mind – and one of those things is title insurance coverage.
Many of our customers wonder if they need title insurance when purchasing a foreclosure property. If you’ve found yourself asking this question, you’ve come to the right place. At Heights Title, we’re the experts on all things related to title insurance and we’re glad to help you find answers.
Title insurance is how you protect your investment, and it’s just as important to have when you buy a foreclosure property as it is when you buy a traditional home. Even though the titles of bank-owned homes are typically clear of defects that you might find in a traditional sale, foreclosure properties can be complex and the title history can get messy. Beyond that, the bank may not catch all the issues within the title and, without title insurance, that could cause problems for you in the future.
When you buy a foreclosure property, you may run across the same title issues that you would see on any other type of property. You could also experience expensive repairs that the bank may not be aware of.
Here are some of the issues that a foreclosure sale might include:
A title search must be done in order to learn about these problems before you purchase the property – so you can avoid being liable to fix them or pay for them.
With title insurance coverage on a foreclosure property, you have peace of mind that the property belongs to you – no ifs, ands, or buts about it. When you invest in title insurance, a title search is completed and public records are combed through, and this will reveal any defects in the title that should concern you. If defects are found, you are protected with title insurance. If the title is clear, that’s even better news.
Buying a foreclosure property can save you a significant amount of money, but you won’t get the same deal if you’re forced to pay for defects in the title. Protect yourself and your investment with title coverage – contact us at Heights Title to learn more.