title insurance,etc.

I was looking at an ebay auction. The seller does not do title insurance and it seems like this is a foreclosure, so I guess I should have it. Anybody know someone reputable where I can get it? Seems like the seller will take care of the closing procedure. Here is what the auction says (sorry about the wordiness):
Notes: A document preparation fee of $225 will apply. This is all we know about this item. Any fees/liens owing on this item are not part of the final bid price. A bid submitted by a buyer is an agreement to our Terms.
Title and Escrow: A title search was NOT performed on this property. BKAssets does not provide title insurance. If title insurance is desired, the buyer is responsible for obtaining it through a title company. The title company must comply with the terms of the sale as ordered by the court. Because this is a US Bankruptcy Court ordered, as is where is sale, Bkassets.com is not permitted to use an escrow company, or provide any warranty or guarantee, implied or stated.
Legal Info: By Order of the United States Bankruptcy Court, Bkassets.com sells this and any other property "AS IS, WHERE IS", with no warranties implied or stated. This means that the Seller and the trustee are not responsible for problems (if any) with the title, the condition of the property, or any liens or encumbrances against the unit. The buyer will be entirely responsible for this property after the sale including but not limited to: paying any fees/costs associated with this property, paying all fees/liens (if any), recording/transferring the title and gathering any paperwork/documentation necessary for that process. Seller and trustee are NOT realtors. BKAssets and the trustee shall be under no obligation to buyer except to provide buyer with a Trustee's Deed. All the information as to the item description has been provided by the management company and/or the Resort. BKAssets cannot guarantee that all the information is accurate. BKAssets recommends all bidders perform their own due diligence prior to bidding. As with any bankruptcy sale, this sale may be subject to court approval.

How much is the property selling for?

Here is a brand new TUG article on the topic.

More info. about BKAssets.com

It is selling for $1100, which I know is high, but my son goes to school nearby and I would like to have a "home base".

You could hire any title insurance agency licensed in the state where the TS is located, better yet, in the same county where the TS is located. At that price, the binder (offer of policy on closing) and policy would be a fairly nominal amount and worthwhile, unless that is you'd prefer to "self-insure" as some do when the potential loss is small.

BTW, despite the fine print to the contrary, winning an eBay auction for R/E does not contitute a legally binding agreement to any terms. Until and unless a written contract is signed or you "perform" by paying the money, whichever occurs first, there is no enforcable contract.

If using "BK Assets", their ads usually list any liens or past due amounts. They state what they are, and then also state that the stated amounts are the only ones they have found and know about. That is part of their discovery.

They have property acquired---actually a hired entity by the court--- to try to sell assets of a person/couple who filed bankruptcy, to settle some of the debts.

As far as getting title insurance--- if you think you need it, that's fine, but, I know, when speaking about the amount of $$$ you are spending for the timeshare, and the amount you would pay for it (probably more than $300), I would "pass" on getting it.

Tony

Ok, I'm confused. Say I buy this timeshare and pay $1100.00. After I pay, liens and past due items turn up. Aren't I liable for them? And couldn't I owe thousands of dollars?

TJK said:

Ok, I'm confused. Say I buy this timeshare and pay $1100.00. After I pay, liens and past due items turn up. Aren't I liable for them? And couldn't I owe thousands of dollars?

Click to expand...

No. You have no personal liability for liens and other secured items that were incurred by or levied against the prior owner. Things like IRS tax liens, MF's, R/E taxes and pledges of collateral "run with the land" and survive Bankruptcy, but do not create a personal obligation.

These sorts of things can be enforced thru foreclosure. So you would be on the horns of a dilemma...
either pay off the liens (voluntarily) or watch your TS (along with $$ you paid) go bye-bye.

Title insurance pays one of two ways:
- They will pay off liens ect that they missed when they issued the policy
OR
-They pay you the purchase price of the TS ( in this case $1100)

So for ~$300 the title insurance comapny will either pay off the liens or pay you $1100 ( the lessor amount is most likely)

Title Insurance or not

I'm a Title Agent in Pa. with a realestate settlement company but not for timeshares. As a Title agent I see the need for title insurance when you are buying a house or expensive tract of land but unless it works different for timeshares the most you are protecting is $1100 by paying an additional $300 or so. Most title policies will only cover up to the purchase price. I personnally wouldn't but if makes you sleep easier then it is $300 well spent. Especially if you like the resort and week.

Good luck

title insurance

TJK,

Thought about your post and my reply on drive home tonite and think that maybe title insurance might be best in your case.
Couple things to consider :

You obviously like the property for the location and time period so it may be worth protecting that aspect. Would you still have thought it a good deal if it was selling for 1400 with the seller providing title insurance?

Not sure terms of sale will let it be contingent on getting title insurance though. Better check on that. The sale from a bankruptcy may leave some bills hanging for MF taxes or assesments which would attach to property. Mortgages should have been discharged as part of bankruptcy but there is alway that possibility.

Good luck

Thanks to all.

it was pointed out in a previous meeting that title defects just at a single marriott resort were up over 35% in the past few years.

thats nearly 1 out of every 2 titles having defects that could impact the transfer to the new owner.

just food for thought when considering title insurance!

I checked with the resort and they advised me that there are no liens or any past due amounts on the week, and the mortgage is paid in full. Need I be worried about anything else?