Preliminary Title Search for REO Purchase

[John McLaughlin]

I'm considering bidding on a single family REO on an online auction. I did my own "title search" and found only one mortgage (foreclosed). In addition, I found that the prior owner has two or three IRS tax judgements (totaling around $10,000) and filed for bankruptcy prior to the foreclosure. Do these IRS tax judgements create liens on the property? Would these liens have to be cleared by the back prior to closing? Is it worth doing a Preliminary Title Search (by title company) prior to bidding? Has anyone done a Preliminary Title Search? How much do they typically cost?