Foreclosure Purchase Procedure in California

[rody084]

State: California
County: San Francisco

Hi,

I am working with another real estate investor here in San Francisco on acquiring properties from either foreclosure auctions or owners who are currently facing foreclosure and wish to sell before the auction.

I wanted to see if someone could help me with some questions that I have about the proper procedure for this.

My first question is regarding title insurance:

1) How do we protect ourselves from a defective title before we send over all the money? We'd like to protect ourselves with Title Insurance, but have been told that it cannot be purchased until the property itself is purchased, in which case it would be too late. How do we work around this?

Thank you very much in advanced for your help and advice,

Rody

 

[LindaP777]

State: California
County: San Francisco

1) How do we protect ourselves from a defective title before we send over all the money? We'd like to protect ourselves with Title Insurance, but have been told that it cannot be purchased until the property itself is purchased, in which case it would be too late. How do we work around this?

Hire a professional to conduct a thorough title search.

 

[kaym]

Rody, it is a very good idea to work with a good real estate attorney to begin with. He or she can show you how to protect yourself (as well as possibly setting up trusts and an LLC) and give you some understanding of what a title search involves.

Most of the foreclosure pros do learn to do title searches at the courthouse, though. Some court clerks can be very helpful, and you can find some good discussions at sites like thecreativeinvestor and probably a number of other sites or yahoo groups devoted to this.

 

[HomeGuru]

duplicate post.