after foreclosure clear title? - Posted by jd orlando

Real Estate Investing
1

Posted by jd on March 18, 2002 at 07:21:12:

Thanks, I don’t want to get screwed.

JD

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after foreclosure clear title? - Posted by jd orlando

Posted by jd orlando on March 18, 2002 at 06:28:42:

Is the title clear after a foreclosure sale. Are all liens wiped off the property. I am wondering b/c if one buys a property from someone who bought it at a foreclosure, should I buy title insurance. It seems that the title should be brand spanking new.

Thanks
JD

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Re: after foreclosure clear title? - Posted by David Krulac

Posted by David Krulac on March 18, 2002 at 13:28:05:

Surviving foreclosure will be

  1. real estate taxes, including back taxes
  2. muncipal leins like water, sewer and trash
  3. any senior lein to the lein foreclosed
  4. any lein not notified in the foreclosure process (usually an ommission)

hth

David Krulac

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In a perfect world… - Posted by JT-IN

Posted by JT-IN on March 18, 2002 at 07:32:35:

JD:

In a perfect world, where mistakes are not made on foreclosures, or other RE transfers, there would be no need for Title Ins.

However, due to human error, Title Insurance is required here, more than ever. Following a transfer of title due to Sheriff Sale, with people that are always in financial distress, there can be creditors that are left out of the legal proceedings, which would create an unresolved lien, and an issue for the new buyer. Don’t be the guy left holding the bag!

Just the way that I view things…

JT-IN

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Re: after foreclosure clear title? - Posted by JoeS

Posted by JoeS on March 18, 2002 at 07:18:06:

It should be, but no guarantees. You should buy a Title policy on every property you want to buy. Have the wording in your contract to purchase read something like this: “this offer subject to marketable Title, free of all liens and encumberances. In the event the Title is not marketable, the buyer has the option of cancelling this contract and receiving a prompt refund of any and all earnest money deposits.”

That enables you to decide if you want to proceed with the deal after the Title exam comes back. Yes, usually the Title policy is your expense, but well worth it. I have also at times worded my contract so that the seller pays if the Title is not marketable.

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Title insurance is a must… - Posted by Ben (NJ)

Posted by Ben (NJ) on March 18, 2002 at 07:13:25:

particularly after a foreclosure. Some defendants may have been left out or not properly joined in the action.

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Re: after foreclosure clear title? - Posted by Anthony-OH

Posted by Anthony-OH on March 26, 2002 at 23:41:32:

Very Strange…The documentation of the sale, explains it a little different in my county…

  1. real estate taxes, including back taxes - Treasurer has right to stay the foreclosure and sell it at tax sale, ONLY Federal Tax Liens will survive a foreclosure.

  2. muncipal leins like water, sewer and trash - if they don’t notify the Sherrif Pre-Sale, they don’t get squat (if they do they are paid from proceeds of sale)

  3. any senior lein to the lein foreclosed - They better be at the sale to protect thier interest

  4. any lein not notified in the foreclosure process (usually an ommission) - S.O.L. in my county

My Sherriff GUARANTEES free and clear title AT CLOSING…

I’d still get insurance :wink: