All Forum Posts by: Yuvaraj Vimawala

Hello,

I am planning on bidding on a few properties at my county's (Texas) trustee auction this week. I usually do a basic title search on my own and am familiar with junior liens (e.g. HOA lien) that get wiped out as the senior most loan gets auctioned/sold.

However, some property owners have a huge Federal lien, child support lien, HUD second lien (loan for remodel or extensions) or an abstract of judgement against them. For the purpose of this discussion, lets assume all succeed the senior lien (which is sold here) on the property in time.

Would those liens be something I would inherit or have to pay off/settle when I acquire the property? I have trouble understanding exempt vs non-exempt property when it comes to the judgement abstracts, child support & federal liens. 

Usually these auctions just have a substitute trustee deed filed with county cleark. No Closing is needed. Even If I hire a title company and do a closing, would these abstract amounts be deducted from the original owner's payout or come out of my pocket? 

Thanks in advance. 

Makes sense. I may not sell or refinance for few months. I own the property all clear, so Can I ask the Title company to do a closing? In that case will they sell me an OTP? I am worried I have not protected myself against any claim from previous owners. 

Fellow BiggerPockets investors,

I recently purchased a SFR in a trustee sale in Texas. The transaction went through fine and I received the substitute trustee deed. I am trying to purchase a Owner's title policy to protect myself, but no Title company is willing to sell me one.

They have  not even done a title search (which I had done myself before buying and there were no defects), but simply refusing to sell an OTP unless I have a bona fide contract to sell the property. Why is this? How can I protect myself? 

Any recommendations on Title companies that would insure foreclosure properties? 

Thanks in advance.