An REO Title Deed Question

[Scott Hawley]

I found some REOs and when I was backtracking the title (through the assessors website) I found that the proeprty changed hands several times in the space of 1 or 2 months time. Some of the deeds that were recorded were quit claim and some were warranty. I am wondering if one of those transactions did not get recorded (essentially clouding the title to the property), would there be a fine from the assessors office?
Can a property change hands several times through quit claim deeds and w/o being recorded?
I would appreciate any answers and advice on this matter.

[J Scott]

Here is my answer to this same question you posted in another thread:

"Yes, you can definitely have a situation where properties change hands without the proper documentation being recorded, which can ultimately cloud the title...

That said, if these are REO properties, the seller (the bank) is required to provide clear and marketable title in order to sell the property to you. Assuming you take the owner's title insurance that the bank is likely willing to provide (and pay for), you should assume no risk from title issues when you purchase an REO.

So, unless there is more to the story that you're not disclosing, I'd say you really don't have to be at all concerned about the chain of title on these properties...just make your offers, and let the seller and the title company worry about getting (and insuring) you clear title..."