Trustee Sale Gaurantee, Title Insurance Trustee Sale, IRS lien

[Brian T. Grooms]

I have been preparing for an upcoming Trustee Sale in AZ. This will be my first. I have researched extensively. I really want to become an expert at avoiding the pitfalls of trustee sales.

Please, those experienced with Trustee sales, provide comments to some of the following. It would greatly appreciated!

I am still not clear if it is possible to get title insurance immediately on the title purchased at the Trustee Sale. Is this possible? Should the issuer of the Trustee Sale Guarantee (TSG) offer title insurance since they issued a TSG in the first place? Should I be as concerned as I am about possibly not obtaining Title insurance (for at least 120 days, explained below).

Does the (TSG) protect against cloud on title?  (Otherwise what is the purpose of the TSG?) 

I sent the trustee a check to get the TSG from them directly. I am still waiting to get this back.  It is Thursday evening, auction is Monday, they should have the check tomorrow and will email the TSG tomorrow. If I dont have it by Monday, is that a big problem?

I had a title company send me a "listing kit" that along with it comes all of the recorded documents associated with the property. I went through all of the documents and have a good understanding of the chain of title from this. I have also now figured out how to pull all of the records myself.

I have also paid the same title company for  "Condition of Title Report" to get their official opinion (quasi official anyway).

The title company has told me that they cannot pick up IRS liens and if their is one it will be unknown. This sounds incorrect to me.  If there was an IRS lien on this property would it not show up in the county records as they say?

The title company also told me they cannot issue title insurance for 120 days because of the IRS 120 day right of redemption period if there is in fact an IRS lien.

I will contact other title companies tomorrow also to see what they say...

However,  as I have been learning, It seems like it would make since to always get a TSG and get title insurance from the issuer of the TSG if it is possible. Otherwise I just dont understand what the point of a TSG is if is not a real guarantee that the title is clear or that you can at least get insurance with the guarantee.

Is the TSG basically the same thing as the "condition of title report" i received from this other title co. except from the Trustee's title co.?

Any comments relevant to the above are greatly appreciated!