Learning to research the title of property.

Posted by Ward-CA- on December 03, 2002 at 10:28:32:

In Reply to: CA - Trustee's Sale posted by Grace on December 03, 2002 at 04:32:41:

: I am looking into purchasing a house at a Trustee's Sale. Many of the properties listed at the sale has a low minimum bid. The minimum bid is usually higher than the loan amount + the delinquent amount. One thing I did notice is that sometimes the minimum bid is way under the original assessed value of the property. Would the trustee's sale be for a second trust deed only? It does not seem realistic for a trustor to be giving up a property that is worth $400,000 for only $50,000 at a trustee sale. The trustor can just sell his house in the market for $100,000 and resolve the foreclosure problem. What research can I do to ensure that there is nothing wrong with the title or something? Or to ensure that this is not a trustee's sale on a second only and the first will be auctioned off at a later time? Would the auction company disclose this information during the auction? I appreciate any ideas you can give me. Thanks.

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Grace,

Do NOT assume that the trust deed going to sale is a first in priority. You were right to suspect that a very small opening bid in comparison to the full market value of the property probably indicates that a junior lien is what is going to sale.

There’s probably nothing wrong with the title of the property. But you really need to know how to quickly and accurately research the title record of any foreclosure property you intend to buy, whether it’s from the owner in default or at the trustee’s sale. The main reason is to exactly know what liens or interests will remain against the title of the property after you buy it.

No one involved in processing the foreclosure, like the trustee or the lender, is going to tell you what liens there are or not for fear of liability to you if they make a mistake in the info they give you. So you have two possible choices concerning learning what’s against the title of the property in foreclosure. One is to pay for a title report from a title company. That will cost about $300.00 per report. The other way is to get the skill of a title searcher and do your own title research for free at your local, county recorder’s office.

To try to pick up the skill yourself, through trial and error, will take you approximately one to two years. To learn it in an intensive, one-on-one, hands-on class just three days.

To train yourself in this unknown skill will cost you nothing but lots of time and worry, whereas to learn it from a working pro, about $3,000 dollars.

Hope this helps.

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Follow Ups:

• Re: Learning to research the title of property. - Michael 07:16:54 09/21/05 (0)

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Comments:
: : I am looking into purchasing a house at a Trustee's Sale.  Many of the properties listed at the sale has a low minimum bid. The minimum bid is usually higher than the loan amount + the delinquent amount.  One thing I did notice is that sometimes the minimum bid is way under the original assessed value of the property.  Would the trustee's sale be for a second trust deed only?  It does not seem realistic for a trustor to be giving up a property that is worth $400,000 for only $50,000 at a trustee sale.  The trustor can just sell his house in the market for $100,000 and resolve the foreclosure problem.  What research can I do to ensure that there is nothing wrong with the title or something?  Or to ensure that this is not a trustee's sale on a second only and the first will be auctioned off at a later time?  Would the auction company disclose this information during the auction?  I appreciate any ideas you can give me.  Thanks.

: =•=•=•=•=•=•=•=•=•=•=•=

: Grace,

: Do NOT assume that the trust deed going to sale is a first in priority. You were right to suspect that a very small opening bid in comparison to the full market value of the property probably indicates that a junior lien is what is going to sale.

: There’s probably nothing wrong with the title of the property. But you really need to know how to quickly and accurately research the title record of any foreclosure property you intend to buy, whether it’s from the owner in default or at the trustee’s sale. The main reason is to exactly know what liens or interests will remain against the title of the property after you buy it.

: No one involved in processing the foreclosure, like the trustee or the lender, is going to tell you what liens there are or not for fear of liability to you if they make a mistake in the info they give you. So you have two possible choices concerning learning what’s against the title of the property in foreclosure. One is to pay for a title report from a title company. That will cost about $300.00 per report. The other way is to get the skill of a title searcher and do your own title research for free at your local, county recorder’s office.

: To try to pick up the skill yourself, through trial and error, will take you approximately one to two years. To learn it in an intensive, one-on-one, hands-on class just three days.

: To train yourself in this unknown skill will cost you nothing but lots of time and worry, whereas to learn it from a working pro, about $3,000 dollars.

: Hope this helps.


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