internet auctions and clear title - Posted by Marle
Posted by Marle on December 13, 2010 at 12:02:09:
I want to bid on an internet auction property being sold by Freddie Mac
This is part of the contract:
- TITLE AND CLOSING adjustments:
A: Title: The consummation of this transaction is subject to and contingent upon the Seller?s ability to deliver fee simple title which may include, but not be limited to, Seller?s ability to obtain releases from the existing encumbrances or clouds on title, if any. Fee simple title shall be delivered to Buyer by Special Warranty Deed on a form acceptable to Sellere in Seller?s sole and absolute discretion.
B: Encumbrances: Any encumbrances or defects in title must be removed and Seller must convey title free and clear of any encumbrances and title defects with the exception of restrictions and easements of record which will not materially interfere with the Buyer?s intended use of the property. Should Seller elect not to clear any and all title defects, Seller?s sole responsibility to Buyer will be refund Buyer?s deposit thereby releasing both parties from the contract.
I think that means that if there are(were) any other mortgages or liens, that Freddie Mac would eliminate them and I would not have to worry about any, that the title would be clear, and the property would be mine. Is that correct, or am I mistaken?
Several months ago I did ask an agent at my title company if there were any mortgages other than the first, or any liens on it. She said at a quick look there was only the original mortgage. I don’t want to find out after buying there is another mortgage or liens against it that I have to pay off.