Escrow is a temporary arrangement in which a third party holds assets such as earnest money or property on behalf of the two parties to the transaction. Once conditions of the agreement have been fulfilled, the third party then releases what is being held to allow completion of the sale. However, real estate investors often deal with situations that are not “regular”. TWS Title has services for real estate investors and such as Bankruptcy closings, tax sale property services and closings, foreclosures, assignment contracts, and fast cash closings.
Investor Services
Bankruptcy Closings
There are 3 types of Bankruptcies a property owner can file – Chapter 7, Chapter 11, and Chapter 13. Of these, the sale of a property that is part of a Chapter 7 filing can be rather straightforward and proceed much like a normal sale of property except that it would be dependent on a court to discharge the sale.
Chapter 11 and Chapter 13 are a bit more complicated. These filings involve reorganization of and proposed pay-off of the debtor’s debts. Further, in Chapter 13, there is the possibility that the property may return to the original owner or that the debtor may not receive clearance to sell the property.
Tax Sale Property Services and Closings
Some investors buy property at tax sales in order to increase their portfolio property and make money. However, there is cost involved in each closing which makes the deal less profitable. You can lower investment costs considerably by hiring a team of real estate professionals like us who close your property faster than you ever imagined.
If you purchased real estate from the Commissioner of State Lands tax auction, we can help you research the title, obtain clear and marketable title, and handle the closing on property in any county in Arkansas.
Foreclosures
A foreclosure takes place when a property is seized by the lender. Every mortgage contract has a lien on the property. This allows the lender to take control of the property if the debtor stops making mortgage payments. When you see a property listed as foreclosed, it means it is owned by the lender.
In Arkansas, the foreclosing lender has two options to carry out the foreclosure process: Judicial Foreclosure and Non-Judicial Foreclosure. Most foreclosures in Arkansas are non-judicial, they can only be pursued if it is written into the deed of trust or mortgage in what is known as a “power of sale” clause. There is also a specific procedure and paperwork to be completed in order to begin the process.
Assignment Contracts
An assignment contract transfers one party’s rights, obligations, and benefits under an existing contract to a third party. This is not a direct transfer of the property. Essentially, it is an agreement between the assignor (the original party to the contract) and the assignee (the third party) to assume the assignor’s part in the original contract.
TWS Title provides services to assist you in determining whether the contract in question is assignable and in assuring the transaction proceeds in a compliant manner.
Fast Cash Closings
As the name implies, a Fast Cash Closing involves an all cash transaction to purchase a property. The closing process is much shorter as there is no loan approval process involved. Purchasing a property for cash can be more attractive and motivating to a seller. It can also save you a little money.
We can help you with a cash property purchase needs and make sure all the relevant details and your bases are covered.