I did not check the title before I closed because I thought since it was an REO the title would be clean.

Your points were very identical to what he mentioned.Any extra advice is always welcomed!

Below the signature there is usually a name and title.

I read this article recently. Didn't know things were going to this extreme out there.

[/url]http://www.reuters.com/article/2013/01/10/us-usa-foreclosures-zombies-idUSBRE9090G920130110[url]

This is similar to the "subject to" discussion in regards to how a lender will notice that the title is not there anymore.

County assessor says they don't sell occupied properties at tax sale so I'm not as worried about having to evict.As far as I understand you get title to the property after the tax deed is recorded, but you can't get title insurance for a year because there is a one year redemption period for certain entities.

I have the cash to pay it off, but wanted to start an LLC and take title in it's name instead of my own.

I'm sure I'll want to do a title search in there somewhere.

A future title search would find both the DOT and the release and would know there was no longer an encumberance.Now, if you do this new loan, there will be a new promissory note and new DOT against the property.

If you are tech savvy, my title company offers a free a tool that I have (but candidly rarely use).