Feb 25, 2006, 5:28 PM
Post #14 of 37
Right you are Bubba! I always recommend people do their homework and not just take a real estate agent's and notario's word for things. Not all notaries are, shall we say, diligent in doing their research, or completely unbiased. The bank trust is not a guarantee of ownership. It's a guarantee that you will pay the bank a fee.
As far as title insurance, it sounds like a good idea, but it ain't like in the States. You are right that the title company is likely to just take the notario's word for everything.
Hire an independent notario. Find out the reputations of all parties involved. That's another reason for not rushing into buying something. In the Ensenada case a few years back, there were local attornies and notaries who knew that the title was not clear, but none of the people who bought the later disputed land contacted them. They lost everything. Well, the legiitmate owners did offer to sell them their houses back to them at today's prices, so I guess it's debatable that they "lost" everything, but they sure as heck didn't get to keep everything. The mayor of Pochutla recently sold property that wasn't his in Pto. Angel. And the stories go on.
As far as the writer "taking advantage" of the US lenders, my friend, they are a lot smarter than most of us. I work for one, and I don't think they are simpletons (well, maybe they had a lapse in judgment in hiring me). If things go wrong, believe me, they are the ones protected. There are a limited number of legitimate financial institutions offering loans to Americans. There are also some companies that are out-and-out dishonest. I spent three years contacting and investigating such companies and was, in a small way, part of the process that took place behind the scenes to get financing approved.
All that said, many people do buy property in Mexico and everything works out just fine. In fact, in the majority of cases things are fine. But, as I remember from my days as a Wall Street trader, greed (and speed) kills.
"Mexico" Mike Nelson
Writing about Mexico for 40 years.
Maps, Road Logs for drivers
Author of "Live Better South of the Border."
"Spas & Hot Springs of Mexico."
Mexico is a state of mind.