Bexar County previous unresolved lien issue at closing

[Asad Halai]

Having difficulty with a property we bought at the sheriff's auction (county tax auction) in Bexar county (TX). At closing the title company cannot find a lien release from 2009 in the amount of 64K. That is drawing the very anxious buyers away and need some advice/help. Is it not true that the county's lawyers send notices to all lien holders prior to the sale and if they do not come forward the liens are considered null and void?

[Don Konipol]

@Asad Halai

Title companies often refuse to insure title even if legally lien has been extinguished, if in the underwriters opinion there could be a legal challenge.

This is the risk inherent with purchasing a property without title insurance, such as at a foreclosure auction.

Your solution may be to engage legal council to file for an order of quiet title. Once a court issues the order, a title company should have no problem issuing a policy.

A quick and dirty solution is to ask the title co to issue a title with reserve exception, but this may not make the property any more saleable.