US Treasury Auction property closing

[Byrne McKenna]

Hello BP members,

I just bought a condo in Colorado at a US Treasury Auction.  I would be interested in any feedback on any personal experience regarding closing with the US government. Is title insurance necessary?

The terms of sale state that the government is responsible for any liens and encumbrances on the property.  We are assuming a government deed will be issued and recorded.  In this case, why consider title insurance?  

We are free to select our own title company. In this case, it would be $800 to split if no title insurance is purchased. The government's title contractor (out of state) said they would do the closing for $1500 to me with insurance. When asked what if we do not choose title insurance, the reply was that the government's agent CWSAMS in VA would do the closing presumably at no cost.

Thanks in advance.  About me - I own 10 properties, mostly residential, mostly rentals, mostly foreclosures, only cash in Denver metro Colorado.

Cheers

Byrne McKenna

[Bill S.]

@Branton Peay ask a name brand national chain title company (ie Land Title Guarantee) if they will provide you with title insurance if you resell the property. You might have to share the specific property situation with them. If they say "No" then risk is greater by a lot.