Help - Bought at auction, house is almost done, ready to sell...


#1

Hello FR - I tried searching and found this quote from Sean which is frightning me and relates to my question I ask below

Submitted by Sean - 05/25/2010 - 11:26am

  1. You won’t be able to resell with title insurance until after 120 days has passed. Also if the IRS did redeem they would not have to repay any repairs you made unless those repairs were necessary for property preservation.

Here’s my question - I purchased a property on January 31,2011 @ Orange County Ca trustees sale. If I want to close escrow lets say on March 30, 2011 with a buyer, will a title company not provide insurance? There is no IRS liens on my property, the redemption period is what I am nervous about. And this title insurance, this is for both the buyer and his/her lender’s protection, yes? The conclusion I’m drawing is that the buyer who is obtaining financing is not going to be able to get the loan because no lender is going to make a loan to the buyer without clear title or title insurance with respect to this 120 day rule. Now I’m worried, for title insurance reasons, that I will not be able to transfer this property I purchased to a buyer in less than 120 days from the date I recorded the deed.

Case in Point: This Orange County property here APN 363-164-07 was purchased at the auction and recorded on 9/13/2010. And then on 10/19/2010 the property sold to a buyer who obtained financing. How was the investor able to do this if supposively title insurance can not be issued? The buyer obtained a loan and successfully closed on the deal.

I’m totally lost now & I hope this makes sense. Please help!
Jack

***I constantly see local investors around me flipping properties in less than 120days to buyers who obtain a loan. How are they doing this then?***

I hope I’m making sense.


#2

Okay, I’ve calmed down a little bit. *pheww!!*

I spoke with a reputable title co. that told me they will issue title insurance in less than 120 days (from the time I purchased to the time I sell) simply provided zero IRS tax liens are recorded against the person/property. In my original post, I originally thought that even if the previous owner did NOT have an IRS lien filed, the title co. would still have to wait the 120 days, which is not the case if I understood everything correctly!