Homebuyers who are considering investing in a foreclosure property may find themselves wondering whether they need to obtain title insurance as well. The answer is simply: yes! You’ll want to purchase title insurance for any home investment you may make, even if it is a foreclosure property. In fact, it can be even more critical to invest in title insurance on foreclosed properties since they can potentially involve more financial risk to the homeowner. Here’s why.
Why Do I Need Title Insurance on a Foreclosure Property?
Foreclosed properties can frequently possess more problematic title issues in comparison to traditional real estate investments. When investing in a foreclosed property, you may run into numerous risks. Some of these risks can be outstanding debts that haven’t been cleared, title warranty issues that do not apply to foreclosed properties, and potential tenants that will need to be evicted. By investing in lenders and owners title insurance on a foreclosed property, you will ensure that your real estate investment is protected.
Title Insurance is Easy to Obtain
At Colony Title, we can work with you to ensure that the title insurance purchase process is an easy investment. Whether you’re purchasing a foreclosed home from a court or through a bank auction, you should know that buying through the bank may be a simpler transaction process. For Real Estate Owned foreclosed properties, it can be similar to the typical transaction you’d experience when purchasing a traditional home. The bank can also work through the foreclosure process to ensure there are no falsifications of documents, legal errors, or unknown heirs that may arise.
How Can I Purchase Title Insurance on a Foreclosure?
Before you take ownership of the foreclosed property, you’ll want to ask for a title search. This can help you investigate any underlying legal problems associated with the property. After you’ve settled any potential outstanding legal problems, you’ll need to become the homeowner. Once you’ve obtained the deed, you can purchase owner’s title insurance for additional protection.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, and LinkedIn.