Title requirements on Foreclosure Sale Auction? - Posted by Chris

Posted by Chris on September 27, 2005 at 11:32:12:

Thank you Natalie. Your response is a great help.

Continued success to you.

Title requirements on Foreclosure Sale Auction? - Posted by Chris

Posted by Chris on September 26, 2005 at 14:54:05:

I would like to purchase property at a foreclosure auction; research of property records thus far shows initial mortgage more than 3 years ago of $14,000, no other liens. Plan to purchase the property w/ cash unless the bidding gets outrageous. Should I have a title search done? If I am the highest bidder does that mean that I would own that property free and clear? Property located in FL. Thanks in advance for any help. This will be my first time attempting to purchase property this way.

Foreclosure Sale Auction - Posted by Natalie-VA

Posted by Natalie-VA on September 27, 2005 at 10:37:42:

Chris,

I am not an attorney, but I buy houses at foreclosure auction (trustee sale) often.

My advice is to sit down with an attorney who knows the foreclosure process in your state and ask him/her to give you worst case scenarios for anything bad that might happen.

As far as what liens are wiped out depends on what they are, when they were recorded and which mortgage is doing the foreclosing.

Also, just because the foreclosing attorney does a title search, doesn’t mean they did it right. They might only search back to the foreclosing mortgage instead of searching back 60 years.

They also put weasel clauses in their contracts. They might say if they can’t convey title, they will return your deposit, but then they’ll say they don’t guarantee title.

I think Jim-FL said something about having to come up with all the cash on the day of the auction. Here in Virginia, we usually get a couple of weeks to close.

Buying at foreclosure auction can be a very lucrative way to find deals, but you must be prepared for the worst!

–Natalie