Question about searching for Leins

[James Bitakis]

So my question is, I want to check a property for possible "extra liens" (irs, mechanics, tax lien, etc). What county offices do I go check? 

Once doing that, and then let's say I bid and win a property at auction, do I then purchase a Title Search or Title Insurance?  Just a little confused on this.  Because I can't see paying for a Title search (unless its cheap, like $10 or something), when I may not even win the property.

[Rick H.]

@James Bitakis Your real question has more to do with when and how much due diligence to perform prior to buying.

If buying distressed assets at a liquidation sale such as a foreclosure auction at county courthouse, pro investors learn efficient ways to research title on each and every property prior to sale. 

Some have an established relationship with their title company which will dedicate research resources. 

The bidder provides title the list of properties that they intend to bid on that day based on sales posted online. 

Title researches each property for all voluntary liens and involuntary IRS liens that will affect the equitable position. 

The bidder has a checklist for each property and confirms the lien position and makes a quick estimate of ARV.

Meanwhile, one fieldworker door knocks each property to determine if occupied or vacant and reports back to person handling the list as occupied properties are worth less due to cost and delays of getting possession.

Another person may be stationed at the recorder's office who checks for last minutes changes to title that would impact bidders offer.

If buying directly from a homeowner, you have more time to research (hopefully). If not, additional time can sometimes be gained using the legal system. 

You can learn to efficiently research title yourself however you must be willing to do more than just click and a few keystrokes. Serious investors spend the time and money to learn how records are archived in your state and county's public records office. 

Typically, the county recorder is the repository for recorded deeds, voluntary liens such as mortgages or trust deed and involuntary liens such as tax liens, code enforcement liens and general liens which are not property specific like abstracts of judgment (AJ) which are linked by grantor-grante index.

95% of would-be real estate investors drop out because they are not willing to study, learn and apply title knowledge. I almost missed it all myself, were it not a good mine of success that I stumbled on nearly 30 years ago because I was willing to dig further.

Are you up to the challenge?