Buying non-performing mortgage loans has become an incredibly popular and profitable form of real estate investing in the last couple of years. But in order to invest safely and ensure returns investors must avail themselves of the help of a great title insurance company.
Important Title Services for Buyers of Distressed Properties & Notes
There are several stages at which a buyer of non-performing loans needs the services of a reputable and efficient title insurance company.
When shopping for the best note investments due diligence is critical. At a minimum this means a reliable title search to identify exactly what liens are attached to a property. In many cases investors may also need assistance with clearing potential title issues and clouds on title as well as help negotiating out or down other liens. Having a trusted title insurance company in your corner with access to their real estate attorney can be a huge help here and save a lot of money, thus increasing returns. Depending on whom the note is being purchased from, investors may also want assistance with recording documents including assignments of mortgages to protect their rights and position.
Dependent on how the loan continues to perform and the intentions of the property owner a buyer of non-performing loans may also need help with executing a loan modification or foreclosing on the borrower.
If foreclosing and reselling the property the note holder will likely want assistance with title, preparing and reviewing real estate contracts, and coordinating the transaction to minimize the drain on their time.
This also applies to real estate investors buying REOs and other forms of distressed properties. The recent ups and downs in the market, including the robo-signing scandal, have resulted in all types of wild title issues and complications with chain of title and receiving a clean and marketable title. No matter how great a deal looks due diligence and actual title insurance is vital for ensuring safety of capital and returns.
The Search for an Investor Friendly Title Insurance Company
One of the big challenges today is finding an investor friendly title agent who is excited about helping investors and understands the challenges they face.
Erika Weichel of My Coordinator LLC and in conjunction with Continental Title Agency has been offering such services to investors including fast title searches, personal service with extended after hours assistance and mobile closings. Buyers of non-performing loans and REOs will love the investor friendly attitude and facilitating of legal double closings and will find the company’s website MyCoordinatorLLC.com a great resource for calculators, free real estate forms, and more.