Bank owned purchase, not offering clear title.

[Gail W.]

I am trying to buy a house that was in foreclosure and is now a REO. We agreed to a cash sale as is and the agent sent a contract to purchase. The problem is there is language in the contract addendum that says the bank is not responsible for any mechanics lien, materials lien, or tax liens which were present before the bank gained possession. This is my first REO and the agent is telling me this is a normal contract for the bank. Is this the way most REO's are sold?

[Wayne Brooks]

No, this is Not normal as most reo’s are sold with title insurance. As @Benny Nahmani mentioned, get a title search to see if there are any liens...this could could be just generic language.

Also, mechanics liens and judgments would have been wiped out by a proper foreclosure. REO's are Never sold with back property taxes due.