Auction Purchace -title Q&A...

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Posted: Sun Jun 17, 2007 6:47 am Post subject: Forclosure auction purchace-encumberances

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Hi,
In CA, which is a non-judicial state, any subordinate "loan" liens are wiped out. In other words if the first position lender is the foreclosing lender, and there is a second and a credit equity line, they both get wiped out. Now if there is say, a tax lien or mechanics lien against the property, then yes, you must pay these to clear the title.
Some seasoned purchacers, who do it regularly, pay someone to do title searches at the County Recorders, prior to the sale. You can do this as well. But you must be able to understand the lingo on the filed docs. Also, a preliminary title report can be pulled by most realtors and all title companies.
I am goinf to copy and paste this to another new thread as well, as I would like to know about the process in both Judicial, as well as trustee states. I have a link somewhere to a site that goes through the process in all states.
*************- We are off to the airport for our DENVER trip today!!!