Buying A Home At Auction and The Protection of A Title Search
The most common way to buy a home is through a real estate agent or directly through the owner. But you can also buy a house at auction.
When a property owner is delinquent on property taxes or mortgage payments, a house can be put up for auction.
If you’re patient, it’s a great way to buy a home. However, you should know a few tips before heading to your first auction.
When a property owner is delinquent on property taxes or mortgage payments, a house can be put up for auction.
If you’re patient, it’s a great way to buy a home. However, you should know a few tips before heading to your first auction.
At the auction, you’ll be provided details about the property. Always check with a title insurance company to see if there are any other outstanding liens on the property. If there are, you’ll want to find out if these clouds on title can be cleared with payment, or if the owner has to clear these liens before you can take ownership of the title.
You will have to pay a title company to do the search, but if it’s a property you really want, it’s worth it. Another avenue is to go to the court house and do a quick search yourself. If you’re comfortable that there are no other problems with the title, then you can wait until you’ve bought the home before doing a formal title search.
Just realize that if your search is not thorough, you could find yourself liable for home loan payments attached to the property.
Getting a title search protects you because many auction houses do not have access to a title company for confirming the validity of the property’s title. Yes, you may have the option of backing out of the real estate transaction, if there are problems with the title that cannot be cleared.
But why borrow trouble? For a couple hundred bucks, you can know for sure if the property is worth your time.
You will have to pay a title company to do the search, but if it’s a property you really want, it’s worth it. Another avenue is to go to the court house and do a quick search yourself. If you’re comfortable that there are no other problems with the title, then you can wait until you’ve bought the home before doing a formal title search.
Just realize that if your search is not thorough, you could find yourself liable for home loan payments attached to the property.
Getting a title search protects you because many auction houses do not have access to a title company for confirming the validity of the property’s title. Yes, you may have the option of backing out of the real estate transaction, if there are problems with the title that cannot be cleared.
But why borrow trouble? For a couple hundred bucks, you can know for sure if the property is worth your time.
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