All Forum Posts by: Aram Schwartz

@Michael Leung You have bought over 20 houses from them??? Were you comfortable with using the seller's title company if it's the most reputable one in the area? 

@Jonathan Plant Hey Jonathan, you said that you love auction.com REO properties "which means that they are all free and clear of liens." That seems to be the response from the listing agent, seller's lawyer, and the title company. They say the same thing. I was wondering since auction.com does have that list, liens exceptions 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"

How did you go about making sure these liens exceptions as specified on auction.com are covered in your ultimate title insurance policy? How did you go about to work with the seller's title company, or perhaps you used your own, to make sure these are covered since auction.com specifies these as exceptions? And when you approached the title company, were they pretty ok with you bringing them the list and having your coverage cover these (even if it means adding more money to make sure each of these are in there)?

Thanks & Regards,

@Rocky V. Rocky, I have read you on many threads. Congrats on doing well with auction.com. We also are in process for a studio condo we got on there, the title stuff especially using their title company requires a bit of work, even if it is the best in the area, since title is the holy grail, we're just keeping that line of communication open good relations with the title company, we have some time before the EMD to make sure the title insurance will have coverage for liens on that 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"

There are a few folks that have gone through them time and time again.

@Zach Zimmer Hi Zach, I was wondering if you had any issues using their title company? Did you have an open line of communication with the title company such that you can bring them the liens 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"

and make sure your title insurance had coverage for these? I understand you wouldn't buy from them again, but having to use their title company did you have any issues?

Thanks & Regards,

@John D. Hi John, if the seller's title company is the most reputable in the area and you have an open line of communication with them, when the listing agent, seller's lawyer, and title company have told me there are no liens it's clear, and I can give the title company 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"

to make sure the title insurance would have coverage for these exceptions, the list from auctions.com, would it still very worrisome to use their title company?

Thanks & Regards,

@Alex G. Hello Alex, when you said "A property tax lien is attached to the property, hence is not extinguished during foreclosure proceedings." it sounds like it's the same for every single foreclosure proceeding, so be default there is always a property tax lien attached to the property that is not cleared at foreclosure when the bank buys it back (our property is bank-owned). so when a title is clear, does the bank, after taking back possession of the property at foreclosure, then just pay the tax lien during the period in which the bank owns it before they sell it to you?

@Chabane Maidi Hi Chabane, I am in the exact situation as you were 1 year ago. I was curious how it worked out? We're just planning to work amicably with the very reputable title insurance of the closing company. Listing agent, seller's lawyer, and the title company have told us it's all clear. But we will be doing a little more due diligence to give them the list from auction.com the liens exceptions 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"

to make sure that any title insurance policy will have coverage for these, was this how it worked for you a year ago? same for us, studio condo auction.com bank-owned special warranty deed.

@Kim Heretick Hello Kim, we bought a studio condo (bank-owned, special warranty deed) on auction.com, the process is different for bank-owned correct? We are working with the closing's title company - they are reputable and we have an open line of communication with them, and the listing agent, seller's lawyer, and the reputable title company have told us it's clear there are no liens - to make sure we are sufficiently insured in the title insurance, to make sure the title policy has coverage without any of the liens exceptions listed on 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"

Is this the right approach for bank-owned?

Thanks & Regards,

@Todd Pultz Got it.

@Todd Pultz Ok thanks again Todd.