When Should I buy the title insurance for a HUD house, before in

I got a bid of HUD house  from a HUD listing agent directly. now this HUD agent is a

dual agent. since HUD does not offer title insurance, my question is w hen I should buy the title insurance by myself, if I buy the title insurance after inspection, is it too late?

Please give me some advice!!!

Here is the answer my agent emailed me, but I don't know when I should  buy?

I know from the document that I signed HUD won't return my earnest money no matter i satisfy the inspection result or not. so I think it is better for me to buy the title insurance after the inspection, but i don't know if it is too late.

I will do the best I can in explaining this.  In a typical transaction the seller will pay for the title insurance for a buyer and offer to transfer title through a special warranty deed.  This will cover the buyer for any liens or potential problems down the road on how a property was transferred.  In this situation, HUD has said they are not going to pay for the title insurance.  It will have to be the buyers responsibility.  HUD will still transfer the property with a special warranty deed. 

 

Also in a typical transaction the buyer and seller will split the cost of Escrow.  In this situation, HUD has a contract with GBS Partners LLC to perform escrow.  They have been instructed not to charge the buyers the escrow fee.  I mention this because the cost of the two will almost even out depending on the title insurance purchased and the price of the home.

 

 

To sum things up, I recommend that you get title insurance, in fact, this is money well spent to insure that you have no lingering title problems with the property.  Chicago Title, the largest title company in Snohomish County will be sending out a preliminary title in about a week for your review.  I will be forwarding this to you and at that time we can continue to talk about this and make sure you get the desired answers.