Foreclosure on Homesearch.com

[Vic G.]

This is in Pennsylvania. 

There is a foreclosure property for auction on homesearch.com 

Property is currently vacant. 

Auction says "Buyer will receive a Special Warranty Deed (SWD) or equivalent"

Current ownership and title is in the name of the bank (Wells Fargo). 

Does a Special Warranty Deed mean that any previous liens, judgements against the property now become the responsibility of the new owner? Say if I were to win the auction and get an acceptance from the bank on my bid/offer, do I become responsible for it? 

Can anyone shed some light on how SWDs work, especially in PA? 

Thanks much!

[Mark Gallagher]

@Vic G.

The short answer is, bid. 

The longer answer is, bid because it's just a type of deed that says they have no idea what could have happened to the title chain before they took possession. Typically when Mrs. Smith sells a house, you convey it with a deed that says Mrs. Smith will defend any title defects that would arise and that Mrs. Smith doesn't know of any title defects at time of sale. 

A SWD says the seller, WF, will only defend the title during their ownership. So if there's a lien from 2000 still open against the property, WF says "oh well" whereas Mrs. Smith would have to help you fight that lien if she is familiar with it. 

Since you'll obtain title insurance, obtaining a SWD means very little in the grand scheme of things.