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If you plan to purchase a foreclosed home, a title company is a must to hire. Most often, this type of service is available to you through your real estate agent. No matter who is using it, though, it is important to work with this type of company for several key reasons when you are buying a foreclosed property. Though every step is made to ensure that only the right person sells a home, there are often hidden circumstances that can put your purchase at risk. More so, it can be hard to recover any money you spend even if the seller did not have the right to actually sell your home and took your money anyway. Who Is the Owner? In a foreclosed home, the owner of the property may be a bit confusing. Most often, the property is considered bank-owned or owned by the taxing authority that filed the foreclosure on the home. However, that may or may not be the whole story. In some cases, people who owned the home may have a co-signer or they may have a secondary person that was written into the deed on the property. It can get confusing. That is why you need a title company to find out who the actual owner of the property is so that you can ensure that you are buying from the right party. What About Liens? Chances are good that if the homeowner had trouble making the mortgage or tax payments, then he or she was also struggling to make other debt payments. It takes just one creditor to go to the sheriff's office and have a lien put onto the home to hold everything up for your sale. If that happens, at any level, the lien holder may have a right to the home or a portion of the sale price, which may null and void the original contract. Liens on homes are very common in situations like this. Long Ago Owners Even further back than the foreclosure, there may be other owners of the property that may still have a stake in it. Though it is less common, it is still possible that an heir or a co-signer on the home's original mortgage will have a right to the property. The key for the title company to learn is who the rightful owner is, and then they must ensure that no other party has a stake in the ownership of the property. By doing this, you remain protected when buying a foreclosed home. A title company may even offer insurance to you to safeguard against such claims at a later time. With a foreclosure, this is often a good thing. There is a Title Company in Michigan known for its willingness to guide prospective buyers through the process of buying a foreclosed home. Consult with Liberty Title for more details. Visit: http://www.libertytitle.com.
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