Updated over 19 years ago on . Most recent reply
Title searches
Does anyone know how to do a title search. What should I look for and what should I watch out for. Is there a website or course that teaches you how to decipher docs that are recorded on a property? I've been tracking this property, It seems to have a lot of equity in it. I gone to the hall of records and looked all docs. recorded on the property, but I don't really understand what all of them mean. I don't want to buy a property thinking I'm getting a good deal, just to find out I own a ton of money. Anyone know how to help me?
Thanks
Most Popular Reply
Okay, in Texas a "Sheriff's Sale" is typically a tax sale done for past due property taxes. A sheriff actually does the auction. Normal foreclosures are done by a trustee who is not a sheriff.
In a tax sale situation, the only liens you will need to worry about are other tax liens (normaly IRS tax liens and possibly not even that depending on your state's laws). Some state's liens will even take precedence over federal tax liens.
In a tax sale situation I would check at the county clerk's office (which in some areas is online) for any tax liens filed against the owner of the property.
In a normal foreclosure situation (for a mortgage lien), the foreclosure will wipe out all inferior liens that are not for city assessments, county taxes, state taxes, or federal taxes. It will wipe out all liens recorded after the foreclosing lien was filed except for any governmental liens.
Working foreclosures to buy at the auction requires some due diligence that you might not have time for. The last thing you will want to do is buy a property at a great price at the auction only to find out that it has another $50K in state or federal tax liens against it that you may be liable for.