Interesting title insurance response from Attorney

[Tyler Watts]

Looking to buy a 4-plex from an auction thru a city. It's your typical auction with 10 day upset period. I had an attorney run a title search and the answer I got back was " Stay away as I'm not sure the City followed the right protocol on foreclosing on the property, therefore he could not get title insurance on it as the owner could come back and cause and mess". Now this is my first round, but everyone I have talked too raised an eyebrow when I explained this. I have spoken to the City and the lady horse laughed me when I said this and said she had never heard of it. She also explained that she couldn't find any liens or mortgages tied to it BUT if something came up it is on me. So I'm mixed b/w responses. My main concern is title insurance and not getting a loan when I want to re-fi. It's not a deal breaker, but definitely something i would like to know before being the winner bidder. 

Any thoughts or guidance is very much appreciated and worth a big fat steak dinner if your in my area or coming thru!

Thanks in advance for reading and any help