LIFE & DEBT & TITLE INSURANCE
- Leah Klein
- 3 hours ago
- 1 min read
If life is 10% what happens to you and 90% how you react to it, then property investment is 10% what you buy, and 90% Title Insurance. Remember, if you buy a foreclosure property, that Certificate of Title comes with NO WARRANTIES, and a foreclosure can get set aside.
Title Insurance is a matter of life or debt for property investors. They become liable for that real estate title from the moment they take ownership onward (even if they only held the property for five seconds). They become part of the chain of title, and as such, have responsibility for its validity.
TIP: Buy Title Insurance for Investment Property based on the Market Value (not on the Purchase Price). Do not go upside down on your investment because of someone else’s mistake!
Lenders cannot lend without receiving payments in return, and the mechanism of foreclosure if those payments aren’t received. However, if you are in foreclosure, seek competent legal representation for the best possible outcome in a bad situation. If you can sell your house before the foreclosure goes through, you may be in a better position to rebuild your financial footing.
Note, my brother Rusty Collins is an attorney who represents foreclosure cases and is a sponsor of this podcast. Rusty Law (904) 826-6606.
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