When you’re buying a home, what you don’t know can cost you.
There are great deals on the market right now, especially through REO’s (Real Estate Owned), also known as Bank Owned Properties. Bank Owned Properties are pieces of real estate that has been repossessed by the lender or bank. In many cases, you can pay a low purchase price for an amazing potential on an REO. The drawback is that the bank doesn’t know what’s wrong with the property. The bank doesn’t live there, so it doesn’t know if the place needs a roof replaced or if it just needs a new doormat. The bank can’t give you guarantees.
You can avoid buying a money pit with a home inspection. Get a home inspection before buying a home, especially an REO, that way you have an idea of what repairs will be needed, and you can consider those costs in your budget.
You can avoid owning a money pit with an owner’s title insurance policy. Purchase title insurance at the real estate closing, that way you can focus on fixing up your home without financial concern about somebody else trying to claim ownership after you’ve paid for it and spent money on repairs.
Title insurance gives you peace of mind about your legal rights to real property. It’s a one-time fee at closing that protects you for as long as you or your heirs have an interest in the property. It pays valid claims and covers the cost of a legal defense of your ownership.
As a buyer, you should be aware of how good a deal you’re getting by having a home inspection done ahead of time, then as an owner, protect that deal with an owner’s title insurance policy.