Title Insurance Title All Clear (Paid for Search) What ifs?

[Kyle S.]

Hi all,

I've read/searched previous posts here and on google in general the last few weeks, however, I'd prefer a point blank answer and not risk my entire future on a misinterpretation (first flip!). 

We found a iffy REO property owned BOA; listing had notes on that there is no clear title, buyer is responsible for liens, only offering quit claim, no title insurance, etc., the listing agent wouldn't even talk to me. We get our realtor involved he gets some story about +7 liens and such totaling 250k, we pay the $175 for a title search with a trusted company out of morbid curiosity. Comes back clean, they have no idea why. They even re-checked it and put it through a "second pair of eyes" and we can get title insurance.

What would happen if we close on it with title insurance and there's a large lien or such that comes out of nowhere or a cascade of ones in various stages? Such as after reno starts, or when we try t