auction.com and due dilligence

[Pati Anderson]

I'm brand new to this stuff. Saw a house on auction.com that I really want if the price is right. I checked the county website and it shows all taxes have been paid. Is there a place I can check for liens I might end up liable for?

At this point, I'm pretty sure that I will not end up with this house so I don't want to pay for a title search. thanks, Pati

[Brian Burke]

@Pati Anderson you didn't say if this is an auction.com Trustee's sale or an REO auction. It it is a Trustee's sale it carries all of the same risks of buying on the courthouse steps.

If it is an REO auction, check the auction terms. If the property is being conveyed by Warranty Deed, you don't have to worry about the title. If title is being conveyed by Quit Claim Deed, you do need a title search. Check the "Due Diligence Documents" link in the auction record, sometimes you will find a prelim in there, sometimes not. If you do find one, it is up to you whether you trust it or not. If there isn't a prelim, you are on your own to do the title search. You can do it yourself if you know what you are doing (at your county recorder/clerk's office), or you can have a title company do it for you, usually at a cost. Again, be careful about trusting it, because without title insurance it will be your money on the line if the title turns out to be less than perfect, even if the defect wasn't shown on the title report.