Closing Co. Introduces Higher Risk Screening Tool.

NEW YORK -- For buyers of higher-risk foreclosure property, The Closing Co. has launched "Foreclosure Disclosure," a service that quickly provides comprehensive and accurate insight on actual title and lien status of properties - before a bidder pursues purchase.

For a flat fee of $450, the service provides a title search, judgment search, county tax search, lis pendens and civil actions search, federal tax lien, and search for open permits and code violations.

"Buying foreclosed and auction properties can be very lucrative or very costly, depending on the property research you do prior to bidding," says Martyn Verster, general counsel for the company, which is based in Miami. He added, "These kind of properties can present certain title challenges that can be evaluated in advance to prevent buyers from going in blindly."

Certain below-the-surface issues affecting a property such as unsatisfied mortgages, invalid quit-claim deeds, judgment liens, probate issues and enforcement liens can all lead to title defects that can prevent any future sale from occurring without a resolution.

Though foreclosure disclosure does not provide title insurance and is for informational purposes only, it does provide investors a necessary insight into the marketability of the property for future resale. Buyers can purchase title insurance on all properties that have not been purchased in foreclosure. The potential buyer will receive a summary sheet for the property and recommended curative steps to take prior to making any offers.

The REOMAC board of directors has ...