Michigan Foreclosures in Oakland County, Title Searches and Title Insurance

Posted in Michigan Foreclosures by Michigan Real Estate Expert on September 7th, 2009

When you’re looking to buy a home, and especially when you’re looking at Michigan foreclosures in Oakland County or anywhere else, title searches are important.

Many buyers make the mistake of settling for a quitclaim deed without doing a title search. Unfortunately, the person who signs the quitclaim deed may not be the actual person holding the title. If there are any liens on the title, the new owner may get an unpleasant surprise at closing. With Michigan foreclosures, the possibility that there is a lien on the title is even greater.

What is a title search?
Title searches are performed by title companies or lawyers. These companies and attorneys search the public records for information on the property’s ownership. The goal is to find out if there are any problems with the title.

What kind of information can a title search give you?
A complete title search will cover such things as:

  • How many mortgages the property has
  • Any liens, such as judgments or mortgages, on the property
  • Taxes owed on the property

The purpose, other than finding current information, is to establish chain-of-title – who owned the property at what time, who they sold it to and so on. Title companies look for proof that any encumbrances have been taken care of, as well as easements, rights-of-way and anything else that can affect the title.

Why get title insurance?
Most title companies also offer title insurance. Title insurance, depending on the company, provides a guarantee that the title is clear, as well as insuring that you can’t be held accountable for forgery, fraud, defective records or incorrect signatures that occurred before you received the title. It also guarantees that there is no encumbrance or judgment on the property.

Michigan Foreclosures in Oakland County are a good bet for a great home or investment property. However, make sure you know what you’re getting by having a title search done. As well, spend the money on that one-time fee for title insurance. It may be the best investment you’ve ever made!

Thinking of buying a home?  As a licensed Real Estate Broker and Lawyer, I’m not your average REALTOR®.  I can guide you easily through the entire real estate process, from negotiating the price and writing a contract to having a title search performed to signing your closing papers.  And, I can keep you from making a mistake that could cost you thousands of dollars. 

Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
Call:  248-514-2640

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