Buying Distressed Properties: Protecting Your Investment
The spring season often brings a fresh crop of investment opportunities. Specifically, some buyers look for foreclosures or short sales in Knoxville and Kingston. These “distressed” properties can offer significant value for the right investor. However, they also come with a much higher level of title risk. Specifically, these homes often have a trail of unpaid bills and legal claims. At Crossland Title, we provide the deep-dive research needed to protect your investment. Consequently, you can buy with confidence in any market condition.
The Danger of Surviving Liens
When you buy a foreclosed home, you might assume all previous debts are erased. Unfortunately, that is not always the case. Specifically, some liens can “survive” a foreclosure and stay attached to the land. For example, an IRS tax lien or an unpaid Homeowners Association (HOA) fee might persist. Furthermore, municipal liens for weed cutting or trash removal are common in Seymour. Therefore, you could be held responsible for these costs after you close. We perform an exhaustive search to uncover every hidden debt. Consequently, we help you factor these costs into your offer.
Dealing with “Right of Redemption”
Tennessee law has specific rules regarding the “right of redemption.” Specifically, this allows a previous owner to reclaim their home within a set period after a foreclosure sale. However, many deeds of trust waive this right. Consequently, it is vital to have a title expert review the original loan documents. Furthermore, you need to know if any state or federal agencies have their own redemption periods. This information is critical for your project timeline. Therefore, we provide the clarity you need to plan your renovations or resale.
Your Safety Net for High-Risk Deals
Distressed properties require a higher level of title insurance scrutiny. Specifically, we look for “breakages” in the chain of title that occur during the foreclosure process. Furthermore, we ensure that all legal notices were properly served to the previous owners. Consequently, your owner’s title insurance policy becomes your most valuable asset. It protects you from claims made by former owners or disgruntled creditors. We are proud to support investors and families across East Tennessee. Let Crossland Title secure your next investment project with expert care.