Title insurance??? - Posted by Julie W

Posted by Irwin on April 23, 1999 at 20:56:01:

All that title insurance does for you in this situation is tell (by the commitment)what has to be cleared from the property in order to insure clear title in the purchaser at the auction sale. Whether or not the auction sale actually removes the defects (liens etc…) from the property is a technical legal question. You should get help from an experienced lawyer before bidding. Auction sales are often full of nasty surprises for the unwary.

Title insurance??? - Posted by Julie W

Posted by Julie W on April 23, 1999 at 09:15:03:

A house is being sold at a public auction that has leins and judgements against it. The person’s name it is in now, is deceased. If I buy title insurance on this property will it give me a clear title or will I need to try to negotiate with each co. that has a lein against this person? Thanks for any advice.

Julie W.

Re: Title insurance??? - Posted by Nancy Cason

Posted by Nancy Cason on April 24, 1999 at 19:36:43:

If the house is being foreclosed, the foreclosure clears all other liens (except IRS). If the sale is a court ordered sale, then check with the attorney etc managing the sale.

The tile insurance only insures certain things, they write in a lot of exceptions. Ask if you buy it what type of deed will you get. A general waranty deed, warants that the title is clear and all debts satisfied and that you are getting clear title. If something comes up later you sue the seller. That is why everyone wants title insurance. If they get sued that want the title company to pay up, just like fire insurance. etc. The title insurance protects the lender, the seller and the attorney who did the title search.

Ask people in your state and at your courthouse, you may have to dig for the information, but it is there.

Have fun