Posted by IB (NJ) on July 28, 2003 at 21:39:36:
Yes you always want to do a title search. You have to make sure the foreclosure was done correctly when HUD foreclosed on the property.
I’m buying a property where the seller brought it as an REO. Despite what the courses and gurs tell us about not having to do a title search on REO’s, my title co. wants to make sure the bank foreclosed correctly and that everyone who had an interest in the property (mortgage holders, plaintiffs who won judgments against the owners, etc.) were served correctly.
Get title insurance. Your buyer’s title co. is going to want to see that you were able to get a title co. to indemnify when you purchased it.