Types of Title Insurance: How does a Lender Policy differ from an Owner Policy?

Title insurance protects a named party against financial loss due to title defects such as liens, encumbrances or adverse ownership claims. So what is the difference between a lender’s title policy and an owner’s title policy?

A Lender policy is generally required to insure any lien placed on a property. This policy insures the lender so if title defects arise, the lender gets compensated for its loss up to the total mortgage amount.

An Owner’s policy is optional and the owner may choose to obtain an Owner’s policy that protects the equity of the owner if title defects arise up to the full purchase price.

In Florida, if two policies are purchased at the same time, the smaller policy can be issued at a “simultaneous rate” for a significant savings in premium.

At Clear to Sell, we are continually developing unique ways to save tax deed investors like you both time and money. If this information has been useful, visit our YouTube channel to see our principal attorney address this topic in an episode of our educational video series: Tax Deed Law Made Simple.

April 19, 2017

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WWW.CLEARTOFINANCE.COM
 – Release your Capital & Increase your wealth!

Cleartofinance.com, a sister company to cleartosell, launches this month with a powerful offer to refinance tax deed and foreclosure auction real estate at reasonable rates to liberate investor cash for further investment.
Paul Krasker, Esq – Attorney and CEO of cleartofinance – says ‘Counties across America are still bringing incredible numbers of tax delinquent and other distressed properties to auction, and each property represents an opportunity for profitable investment to those who have cash available.’

‘Cleartofinance.com has access to a multi-million dollar fund available to be lent to tax deed investors ASAP’

Krasker continues ‘So many investors are forced to “flip” properties to release their cash and buy more properties. We allow investors to hold their properties with great cash flow potential and still have money to reinvest in the auctions.’

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What would you do if you had the CASH you’ve invested back IN YOUR HANDS to invest all over again? With their liberated capital, some investors use the cash raised through cleartofinance.com to further improve existing property and others will head back to the auctions to buy more property. The lender will not stipulate the use of a loan so long as it is intended to increase the real property asset base of the investor, and so create wealth. It’s a win/win!

Whatever the business purpose, with a refinance loan from cleartofinance you can grow your capital base and acquire more tax deed and foreclosure auction properties.

If you have properties that are in good condition and rented out with strong rental income, you are likely seeing a return on your capital. But what if you could retain that return AND have your capital back? Cleartofinance makes refinancing simple with clear and helpful support all the way through the application process.

Learn more at www.cleartofinance.com, and apply online, or at 1-866-224-7730.

Press questions to paul.smith@cleartofinance.com

March 18, 2016

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Why HOA Liens Definitely Do NOT Survive Tax Deed Sales

An Investor on BiggerPockets.com said it perfectly; “Many gurus and books make it sound like buying at tax sale is easy. It is one of the most complicated and legally convoluted businesses in the real estate industry. However, it can be tremendously profitable!” The experienced tax deed investors out there are nodding their heads vigorously in agreement.

Due to this convoluted nature, it is vital for prudent investors to know the laws pertaining to tax deeds to protect themselves from improper claims of liability, such as those made by a Homeowner Association’s for unpaid assessment liens accrued prior to the property being sold at auction.

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One of our clients recently bought a condo at a tax deed sale. He stopped by the HOA office simply to update contact information and was handed a claim of lien for unpaid HOA assessments for the past 3 years and asked to pay it in full. This obviously came as a surprise to him because he was unaware those liens had survived. Thankfully, one of our attorneys recognized the unlawfulness of this and stepped in.

The Florida Statutes and case law can be somewhat confusing to a new investor as to which liens survive tax deeds sales. However, per Florida Statute §197.573(2) HOA assessments clearly do not fall into the category of surviving liens after a tax deed sale. The tax deed purchaser is not required to expend money for any purpose, except for municipal or county governmental unit liens.

Homeowner Associations do not enjoy losing money and may attempt to get paid regardless of any statue stating the unlawful nature of such, and sometimes you just get a new person at the reception desk who has never heard of a tax deed sale. Our client was fortunate to have good counsel intervene on his behalf, but this may not be the case for others.

It is not an ideal situation to create tension with the HOA immediately, and some investors may choose instead to negotiate the fees down before taking further legal action. The bottom line is that an HOA lien recorded prior to the tax deed is extinguished by the sale with notice. The HOA should go after the surplus funds for the assessments accrued prior to the sale, not the tax deed purchaser. This is why it is important to know your legal rights as a tax deed purchaser so you can stand firm your ground when legal lines get blurred.

For additional information See:
Florida Statutes §197.552 and §197.573(2).
Lunohah Investments, LLC v. Gaskell, 158 So.3d 619, 621 (Fla. 5d DCA 2013).
A to Z Props., Inc. v. Fairway Palms II Condo. Assoc., Inc., 137 So.3d 453 (Fla. 4d DCA 2014).
Beneva Ridge Condo. Assoc., Inc. v. SRQUS, LLC, 145 So.3d 104 (Fla. 2d DCA 2013).

October 6, 2015

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Throw Back Thursday: Cleartosell Edition – A Year in Retrospect

As we approach the anniversary of Cleartosell’s first order received in September of 2014, we can’t help but reflect on this past year’s events and how far we have come in such a short time. Boy has it been an exciting year! Probably because tax deed investors are hungry for what we offer, we hit the ground running and haven’t slowed down.

As a small but rapidly growing company, what better way to measure our success thus far than by reviewing the opinions of our clients? So this is exactly what we did. We had our clients fill out customer satisfaction surveys on our timeliness of communication, clarity of communication, and over-all service. We were thrilled to find that we received above a 95% satisfaction rating in all categories, so I guess you can say we made the honor roll!

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A recommendation is the highest form of compliment a company can receive. It is validation that the services offered are valuable enough to gain personal stamps of approval from our clients on to their respected colleagues. Our referral agent list is now growing at an unprecedented rate. Currently, nearly half of all new business is the result of word of mouth or referrals. Sometimes being the center of gossip is a good thing!

Alongside recommendations, returning clients confirm the satisfaction of services. Everyone has that one dependable lawn care service or car repair shop they swear by. Just like one would entrust their pristine lawn or precious vehicle only to a service they could rely on, a tax deed investor needs to know their investment is in good hands. Approximately 60% of business comes from our loyal repeat spend clients that trust us with all their tax deeded investments, and know we will get the job done.

While we have seemingly only just begun, and surely have a ways to go, it is encouraging to see such positive responses from our clients over the past year. We are not perfect, but we harness every opportunity for improvement and continue searching for ways to better benefit our clients. Feedback from our clients on how we can improve in any aspect of service is always encouraged and appreciated. If you are client and have not yet commented on our service, we welcome you to do so! We would love to hear about your experience so we have the opportunity to make it an even better one next time.

Here’s to another prosperous year to come!

September 3, 2015

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Cleartosell.com Goes Above & Beyond for Every Client – Here’s How!

What is a company’s most valuable asset? The answer should always be their clients. At cleartosell, we strive to go above and beyond for every client in our communication, timeliness, accuracy, dependability, and every other aspect of our unique service to Tax Deed investors and referring agents.

What sets us apart from the crowd is the level of detail and attention we put forth on every file we receive, or as we like to say, “leave no stone unturned”. We prove this to our clients every day by the efforts made to ensure that their property will achieve insurable title.

If you invest in Tax Deeds, you know that every property’s title is different. Some properties have titles that are clearer than others. These files are great news for our clients because we can certify quickly and they can move along to the closing table with insurable title in less than 20 days! However, the world isn’t fair, and occasionally some titles turn out to be real problem children.

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The “problem files” we occasionally encounter often require us to take curative measures in order to achieve insurable title. Now, if you are familiar with title conveyance in any way, you know that it is very sensitive. If just one tiny detail is not conveyed properly, it is a domino effect of a broken chain of title from there. This is what happened with one problem file we encountered. The wife in the family of prior owners did not convey her individual interest. When the next owner bought the property from this family, the wife’s failure to properly convey her individual interest resulted in her legally maintaining an interest in the property. The owner then lost the property to a Tax Deed sale, which then landed in the hands of one of our clients.

We uncovered this cloud on the title during our research. The county clerk could have resolved the issue by simply sending notice to the wife, but did not do so. We were then left with only two options.

Either A, we fail to certify the property due to a clerical error that is beyond what we are required to fix (no help to our client) or, B, go above and beyond for our client and find the previous owner in order to get a quit claim deed from the wife.

In line with our philosophy, we chose the latter option and began our search to find the wife in order to set the records straight. We made contact with her after getting her previous title agent on board to help, and subsequently received a Corrective Deed in the mail from her. We were then able to produce a certificate of clear title for our client in only a little more than our 20 day target but still much quicker than any other option.

This is only one of numerous examples of when we have gone the extra mile for a client. We strive to not only provide our clients with a certified property, but also the relief in knowing they will be able to take that certificate onto a smooth and successful closing. Cleartosell goes above and beyond for every client, and that is what makes our company unquestionably unique.

August 19, 2015

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How Real Estate Investors Can Benefit From Zombies

Zombie foreclosures, or homes that have been abandoned by owners during the foreclosure process but are not yet bank owned, are a serious problem for the runaway owners, the lenders, and the surrounding neighborhood. These abandoned homes attract vandalism and squatters causing blight to the neighborhood that can bring down the value of surrounding homes.

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According to The Orlando Foreclosure Attorney, approximately 1 in 4 active foreclosures in the United States will become zombies. While decreasing due to recent implementation of policies to speed up foreclosures, Florida still leads the nation in zombie foreclosures at 35,903 abandoned homes according to RealtyTrac’s Zombie Foreclosure Report released in February 2015. This is most likely having to do with Florida being in the top four states with the longest judicial foreclosure processes. According to RealtyTrac, it takes an average of 946 days in Florida to complete a foreclosure. Unfortunately, due to the low value and high liability of some of these distressed homes, banks are choosing not to move forward with the repossession of the home, charging off the debt rather than taking title. There are zero regulations in place that require the banks to track down and inform the owners of this decision. In most cases the owners have no idea that they are still responsible for the property and may never escape the debt the zombie title terrorizes them with.

There has not yet been a universal solution to fixing this colossal problem facing the housing market due to the fact that every zombie property may require a slightly different solution. However, there is one option that gives investors an opportunity to help in this matter as well as personally benefit from it. Daren Blomquist, the Vice President of RealtyTrac explains that “For real estate agents, as well as buyers and investors, the zombie foreclosures represent an opportunity to identify a distressed homeowner who has already moved on from their home and is therefore much more likely to be interested in selling that home via short sale than a distressed homeowner still living in the home.” This is a particularly ideal situation for fix and flip investors who are looking for a bargain since the value of these homes are approximately valued 22% below what an occupied foreclosure would realize.

To find these deals, local real estate agents can assist in contacting the distressed homeowners and connecting them with buyers in order to negotiate the sale. There are other services out there, such as a product from RealtyTrac called “MEGA” available for download that allows investors to filter homes based on vacancy statuses or foreclosure properties making it easier to identify leads. Skip trace software from websites like TLOxp, and Locate Plus are just a couple that could be used to track down the absent owner.

Please note that while zombie foreclosures can provide an excellent opportunity for an investor to acquire property at a reduced price, it can be a time-consuming and complicated transaction. In order to acquire a property for an incredible deal with this method, one must remain patient, and as with any investment in distressed property, do proper due diligence on the property beforehand! It is vital that investors do all necessary research on how to buy homes in foreclosure before diving in. www.foreclosureuniversity.com is a helpful resource to learn all about foreclosure process and the steps to make when planning on investing in one. Consulting an attorney for advice may also be helpful. There is little competition in this area of investing because it requires more effort than others. The impressive discount may be worth the trouble in the end, and investors can play their part in helping end the zombie foreclosure crisis.

July 26, 2015

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Never walk away from the full profit your tax deed investments offer

blogpic Recently, we have been privileged to work with some of the most prolific tax deed investors in the state of Florida. These individuals and companies have many years of experience in tax deed investing andare experts in their fields. But all is not golden. Even the most seasoned tax deed investors have been faced with an unsatisfactory choice:  hold their property for four years until title is deemed clear and sell via warranty deed at full fair market value, or sell urgently via special warranty deed or quit claim deed at a discounted price because title is still tainted by the tax deed process. We have estimated that investor’s losses on fair market value from this second choice range from 20% to 30% depending on the property value, but we would be interested to hear your opinions.

 

We have created a third option for investors. There is no reason why even the most urgent disposal should not realize the maximum profit possible for the investor. Our largest customers now get the benefit of our 20-day service to enable a quick sale with full warranty of title and consequently no loss on fair market value. In the time it takes to find a buyer and take the closing process through its initial stages, we can remove all questions over the title of tax deed investments, and the investor/buyer gets to access title insurance free of exceptions or abnormal conditions.

 

Title certification doesn’t fit all tax deed investments, but it particularly benefits those properties that need to be sold on with speed, or where an investor wants to recognize the full fair market value of their assets, not the suppressed value that tax deed properties inherently display.

February 25, 2015

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