Auction.com property -- Trouble confirming title
I'm bidding on an Auction.com property listed as an REO, but I'm having trouble confirming clear title.
The scheduled date of the Sheriff Sale was August 22. The title report provided on Auction.com is dated August 29 and shows the foreclosing mortgage, as well as a junior mortgage for $76k. I searched the title myself but, again, no new, updated records are shown (including the Sheriff Sale). I suppose it's too new?
There is the option to receive a special warranty deed on the property if I purchase title insurance. If not, they'll give me a quitclaim deed.
I can't seem to find out if the house was actually bought by the bank at Sheriff Sale and the junior lien wiped clean, or if something like a deed in lieu of foreclosure was how the bank got possession. The foreclosing mortgage is for $324k and the house is worth around $250k in its current condition, so I would assume a deed in lieu of foreclosure wouldn't appeal to the bank -- although I could be missing something.
Odds are that it sold at Sheriff Sale, but it makes me nervous not knowing 100% for sure if there is a $76k lien still in place.
Anyone have any suggestions?