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Updated over 4 years ago,
How to read title for Auction.com
Hi, I'm looking to bid on an auction on Auction.com, but I am a bit confused about the title.
Looking at the title provided on the auction.com listing, performed by TITLE365, in the "Judgment and Lien Information" section, there are a bunch of bullets described as "judgment of record" including: from 2010, a management company amount of a few thousand dollars; from 2010 an apartment management company with an amount of a few thousand dollars; 2011 bank, amount of a couple thousand; and a few other multiple thousand dollars records over the years, including a doctor's office and state revenue collection dept.
On top of this, in the comments it states that multiple bankruptcies were found against names that are at least "similar" to those in the title search, but they didn't have the necessary information to confirm if the bankruptcies actually affect the parties in the report.
On the auction.com listing, like with other listings, the FAQ on the bottom of the page says the property will "not necessarily" be "free and clear of all liens".
However, the listing also says that a Special Warranty Deed is available if I get title insurance. I was planning to do so. If I get title insurance, opting for the warranty deed, will this clear all the liens and encumbrances off the title? If the title insurance says there are exceptions to what is covered, which would make me responsible for the stack of judgments against the former owner, then can I back out and not lose my deposit?
I feel very upside down about all this info and don't want to be caught off-guard.