What Kind of Foreclosure Title Can I Expect?
With huge numbers of foreclosed properties now available for sale you have to wonder what type of title you might expect if you purchase one of these distressed homes.
The lender selling REOs (real estate owned by a bank or other lender) does actually care how you own title, What it does care about is that you buy the property for as much as possible (good luck) and from there on out you’re the owner.
Foreclosure Title
In basic terms you can hold title as:
An individual.
In a tenancy by the entireties. This is a form of ownership reserved for married couples. Each spouse owns 100 percent of the property, meaning if one dies there’s nothing to inherit (because ownership is already held by the living spouse) and if one is sued the property cannot be lost if the other party wins the suit. Alternatively, real estate acquired during the term of the marriage may be held as community property in several states.
The property can be bought by several people as tenants in common. In this case ownship interests need not be equal, there is no automatic right of survivorship, individual owners can sell their interests individually.
Lastly, title may be held in the form of a joint tenancy. Such a tenancy requires four unities — the unity of interest (the same form of ownership for each owner), the unity of time, the unity of title (all owners make their investment at the same time) and the unity of possession (equal access to the property).
Title options can vary according to the jurisdiction where the property is located. Because important matters may be involved — inheritances, survivorship, liability, taxes, etc. — foreclosure buyers should always consult with a knowledgeable real estate attorney for specific advice when determining the right way to hold title.
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