How do u research a title? Why do u need to?

Question

I want to flip houses and I was told that I need a bank friend to research the title before I purchase any foreclosed homes....explain...help...

Answer 1

You use a title company to research the title.  The importance of it is to make sure there are no tax liens, no IRS liens, etc.

Answer 2

When you buy a foreclosed home you may be inheriting the debt against that house with the deal.  You want a full warranty deed.  Be wise!

Answer 3

well I could sell you the Brooklyn Bridge and give you a deed to it, but I won't show up in the chain of title, and I can only transfer to you my interest in the property (which is nil)

and if I did have any ownership interest, I might have liens on it for my mortgage, and my home equity loan and for repairs done on it, for which I haven't paid. . . .And if these liens are recorded, you are on notice of them, and if you buy without these liens being paid off and removed from title, you then will owe all these people for my debts/liens, and your ownership interest (equity) will be much less than you thought