Auction.com

[Roberto Costa]

I'm currently getting my feet wet in this auction site.  Most of the postings I've read in BP say to use your own title company vice the sellers.  Any one has used the seller's title company, purchased title insurance thru them and had any issues?

[Zulma Calderon]

yes I have , I have bought 2 properties and currently closing on the third one . Most of the time the bank in this case ( Wells Fargo) picks the title company . And you have the option to get a special warranty deed through them but you will have to pay for the owners insurance which I recomend. Most of the houses in auction. Com are houses that the bank didn't want to realize at the sale date on the court house auctions . They were foreclousure properties and most of the times the condition inside is not good, probably won't have appliances or fans or lights or cabinets etc.

All the properties that I bought have come with issues.  The title company never told me about ex. The blue house . When I bought the property the title forgot to mention that the house had an expired permit for a roof 20 years ago. Back on time the house was part of the palm beach county but like 10 years ago the blue house now belongs to Palm spring village . Then I am an investor and a flipper and two months later when I was ready to resell the blue house to a new buyer. My title company ( different than the bank ) one tells me they find this expired permit and I couldn't sell the house without closing it.  When I went to the county to close it they told me the house didn't belong to them, then I went to Palm Springs and they said they couldn't close a permit. They didn't open . Nice no ? After back and forth and a lot of tears I happen to meet with the building manager of the county and they close . I was just lucky . I could lost my client and my deal.

The point is do your homework very well check permits on city and county if posible , always pay for the owners insurance . Read the purchase contract before bidding , review your numbers and include the premium . It's always surprises with auction . Com properties good luck