What is a Title Search?

A title search is a very important part of buying a foreclosure. It essentially allows you to view the entire history of the property from when it was built up until the present day. A title search will tell you if there are any debts on the property that you would become liable to pay after purchase or if there are any federal requirements you will have to meet.

Once you've determined if your property is worth pursuing, you have the option of arranging a title search to be performed on the property. It is not required that you do this. However, the amount you pay from having a title search performed may be insignificant compared to the amount you could owe if you incur a previous owner's debts on the home.

The main purpose of a title search is to determine if there are any additional debt claims or liens held against the property. This could include any number of debts for which the home was held as collateral, such as a home equity loan or even a tax debt.

A title search will also tell you if any federal agencies or surveys have assessed the property and determined it to come under their auspices. This might include requirements for water conservation, or restrictions against use or development. A title search can even tell you if the property lies in a potential floodplain.

It may be best to hire a realtor or real estate lawyer to help you if you're unfamiliar with title searches. Sometimes a professional can break down the information in a title search to make it more clear and understandable and help you make decisions based on the results. Again, the amount you pay here may be insignificant compared to paying off the debts of a home that does not have a clean title.

The title search is crucial in eliminating variables that could end up costing you down the road. If you buy a home with additional liens against it, you could become responsible for payment of those debts. If the search reveals that the property has a clean title you should still consider it an expense well spent to know that you won't have to pay any surprise debts if you buy the house.

The best foreclosed home to buy is one with a free and clean title. A clear title is of the utmost importance when buying a foreclosure. However, it is still possible that an extra debt on the home could still bring you considerably below its market value. Make sure you compare it to other listings available through services like ours to determine if it may still be worth buying a home with a lien held against it.

There will always be other foreclosures available if you decide the debt or restrictions against a property make it no longer worth pursuing. Buyers who use our service generally find multiple foreclosed properties from which to choose. Remember that you don't have to make major sacrifices to secure the best deal.