Posted by JL. Guthrie on June 26, 2003 at 18:27:17:
It is typical to get an preliminary title report done through a title company. This should show any and all liens on the property.
GL
JL
due diligence at auction - Posted by Lauren
Posted by Lauren on June 26, 2003 at 15:23:05:
Hi,
In doing due diligence for auction properties, what needs to be done in making sure there are no liens of any kind on the property?
Thanks,
Lauren
Re: due diligence at auction - Posted by Paul Jazwierski
Posted by Paul Jazwierski on June 29, 2003 at 22:04:42:
I would have to disagree with the previous post. Title company preliminaries do not guarantee anything, and first of all you will have to pay for them if you are going to have the title company do them all the time, and second title companies make mistakes all the time. I just purchased a loan that has a clear title policy (From First American Title!) there are no exceptions on the policy and there are 108K of previous liens on the property! Remember when you purchase at the foreclosure sale, you lose the benefit of the title insurance on the loan that is foreclosing. All you are getting is the right to get the property with whatever liens there are on it. That is excactly why every foreclosure states: " The lien foreclosing might not be a first lien". When it comes to the title work you have to do it yourself. Do it once for every property that you are interested in, do it five times for the property that you bid on. The other thing you have to remember that there are mistakes in recording of documents. You have to be carefull to check for all possible spellings of last names of the owners and first names, or any variances in the address. Good luck.