All Forum Posts by: Aram Schwartz

@Todd Pultz Bravo! thank you so much for the clear exegesis and explication! You've answered so many of my questions in the past, knowing exactly what it is I am confused about and being able to explain it so clearly! Talent!

@Todd Pultz Hi Todd, hate to bother you for this. The special warranty deed comes with auction.com purchases. I am confused conceptually about the SWD. Initially, when I first contacted the title company, I told them my concern was about the owner prior to the bank, "So and So (NAME)", the person whom the bank bought it back from at the foreclosure. I found their name online, and the title company said yes the same name, they said they have a prelim and it's clear. So I went ahead doing due diligence with the rest of the stuff. We are moving closer to closing and I still don't understand. The purchase package that the title company sent us, the title stuff (I dont think it's final, the final rundown is 24 hours prior to closing) the title search stuff from the title/closing company has the search done on the bank "So and So Asset Trust". You know, tax and judgement, such and such, and it shows them to be clear. Now my confusion is, I am more concerned about the owner prior to the bank. It's right, they told me on the phone that "So and So (NAME)" was clear, but in my title report, it has the bank's information, it makes sense since I am buying it from the bank and the bank bought it from the previous owner at foreclosure. But since I am getting a Special Warranty Deed, I am concerned about the owner prior to the bank, even though they told me she was clear, it's just that the previous owner's name does not show up in my title report, except in schedule A when she acquired the deed in June 2000, and then when the bank acquired the deed in 2019 from the sheriff's sale. How can I be insured against this owner prior to the bank if it's a SWD?

Hello all,

We are inching towards closing. I am still confused conceptually about one thing. We are buying a REO, Special Warranty Deed studio condo from auction.com. The title/closing company is great. The only question I have is, when I first contacted the title company, I was concerned about the owner prior to the bank, I told them my concern and they said yeah "So and So (NAME)" the bank did a prelim on them, they are clear. My question is not about whether this title company is good or not. My question is, in the purchase package from the title/closing company, the search stuff (I think they will do a final rundown 24 hours prior to closing) but it was the bank's name. I guess it makes sense since I am working with the bank here ("So and So Asset Trust"). But since I am getting a special warranty deed, and reading the description from google what that means, how can I be covered for anything having to do with the owner prior to the bank. The owner prior to the bank foreclosed, and the bank had to take it back. The bank when they bought it back did title work, but since I am getting a special warranty deed, how can I be insured against anything that happened during that transaction?

Thanks & Regards,

@Todd Rasmussen Hi Todd, thank you so much for the advice, your reply provided a lot of perspective to the situation. 

@Bob Floss II We would have chosen the same title company, it's the best one in the area lol. Hopefully I can pay them more, if needed, to be sure it's done right; I don't see why they would object to working with the buyer? 

@Lynnette E. Thank you for the info, we will get in touch with the title company right now and see if they exist and how much they are...I believe what you mean by how much they are (if additional liens exist) is for you to pay additionally to the title co to clear each of them - if any exist; not how much the liens are correct?

@Joseph Legnard Hi Joseph, did you have any issues with any of the titles? since yours were all bought on auction.com, ours is bank-owned/SWD, did you speak to the title companies about the liens exceptions list from auction.com?

"Most liens are removed after a foreclosure property sale, but certain liens may remain.Here are some examples:

• Any lien recorded on title prior in time to the foreclosing mortgage.
• First Mortgage (if the foreclosing mortgage is a second or third mortgage)
• HOA or COA assessment liens (in certain states)
• Mechanic’s Liens (in some states)
• Government liens such as state and federal tax liens, city or county liens, US Government liens.
• IRS liens (IRS may buy the property within 120 days after sale at the price paid at foreclosure sale)
• Code Enforcement Liens, Environmental Liens, and Utility Liens
• Child Support Liens"

Listing agent, seller's lawyer, and their title company have all told me it's clear, but I'm just doing my due diligence because this liens exceptions list is provided by auction.com. So did you give this list to the title company to make sure the title insurance has coverage for this exceptions list?

Thanks & Regards,

@Lynnette E. Hi Lynnette, I know this was 2 years ago. We are in process, from what I understand, you cannot go through their closing company and buy your own title insurance, if you want your own title insurance, you have to also pay for your own closing company in addition to your own title insurance/company. so there is double for the closing company and title insurance. and in order to do this, you have to first have a conversation with the seller's closing and if it's amicable that it can be done co-operatively, then the contract has to be amended and then the seller's closing signs the corrected contract, but both closing companies are always on the contract in that case. Was this how it happened? Did you have an issues with the title? with the liens exceptions list from auction.com?

"Most liens are removed after a foreclosure property sale, but certain liens may remain.Here are some examples:

• Any lien recorded on title prior in time to the foreclosing mortgage.
• First Mortgage (if the foreclosing mortgage is a second or third mortgage)
• HOA or COA assessment liens (in certain states)
• Mechanic’s Liens (in some states)
• Government liens such as state and federal tax liens, city or county liens, US Government liens.
• IRS liens (IRS may buy the property within 120 days after sale at the price paid at foreclosure sale)
• Code Enforcement Liens, Environmental Liens, and Utility Liens
• Child Support Liens"

Ours is bank-owned/SWD.

@Bob Floss II Bob, the seller is using the most reputable title company in the area and our property is bank-owned/SWD, do I still have to get my own title insurance? if I communicate with this title company that here are the liens exceptions list from auction.com, 

"Most liens are removed after a foreclosure property sale, but certain liens may remain.Here are some examples:

• Any lien recorded on title prior in time to the foreclosing mortgage.
• First Mortgage (if the foreclosing mortgage is a second or third mortgage)
• HOA or COA assessment liens (in certain states)
• Mechanic’s Liens (in some states)
• Government liens such as state and federal tax liens, city or county liens, US Government liens.
• IRS liens (IRS may buy the property within 120 days after sale at the price paid at foreclosure sale)
• Code Enforcement Liens, Environmental Liens, and Utility Liens
• Child Support Liens"

Nicely request coverage for these, even if paying more, and would there still be issues? Even if I chose my own title company, I would be choosing the same title company that the seller uses...so...

@Jean Norton Hi Jean, I've been reading this entire thread through. My question regarding the clear title has to do with the liens exceptions list from auction.com They have this list:

"Most liens are removed after a foreclosure property sale, but certain liens may remain.Here are some examples:

• Any lien recorded on title prior in time to the foreclosing mortgage.
• First Mortgage (if the foreclosing mortgage is a second or third mortgage)
• HOA or COA assessment liens (in certain states)
• Mechanic’s Liens (in some states)
• Government liens such as state and federal tax liens, city or county liens, US Government liens.
• IRS liens (IRS may buy the property within 120 days after sale at the price paid at foreclosure sale)
• Code Enforcement Liens, Environmental Liens, and Utility Liens
• Child Support Liens"

Were you then able to get the title company to give you a title insurance with a title policy that covers these liens exceptions. It's not so much about clean title or not, I've been told by listing agent, seller's lawyer, and the title company that it's clean. But my concern has more to do with these liens exceptions listed on auction.com? Can I just the title company this list and even to pay more for each of these, to have them have coverage under the final title insurance?