Is the title clean on REO properties?

[Eric James]

When you purchase a REO, do you have to worry about if the property has any liens? I'm somewhat confused here. Someone told me the title is clean on an REO, but I heard otherwise from an agent. Can someone clear this up.

Great

[Jamie Keeton]

I am going to be the forebearer of bad news here... but "NO". Just because there was a foreclosure does not mean that title is clear. I deal with this day in and day out and even moreso today. The foreclosure attorneys are also capable of mistakes and many times items that must be addressed (brought into) the foreclosure are not. Do not let anyone tell you that just because there was a foreclosure that the title was cleared as a result of...

Also, some bank sellers take title as a result of a "deed in lieu". This means the foreclosed party deeded the property to the bank (seller). In this case, there is no "foreclosure" process and therefore nothing gets cleared.

I am very thankful you asked this question! Got my vote...