just win the bid in foreclosure auction, now what?

Question

Jay Hinrichs · Answer

@Lillian Shi  title companies  write the title insurance.. attornies are agents for the title company

some states are attorney close states IE its the law.. other states don't use attornies you just skip them and go direct to title and escrow company.. ( its how we do it on the west coast) and my purchases in FLA are all done at title company never talked to an attorney in that state regarding a purchase I have made there.

South Caraloina for instance is Attorney you must use them.

Chad U. · Answer

Good to hear you got a title search done beforehand.  The title company may or may not provide title insurance, depends on how comfortable they are dealing with and underwriting auction foreclosures.  Technically you don't need an insurance policy, but when you go to sell it to a 3rd party, they will want a warranty deed, owner's policy and/or lender's policy.  This is where you should hire an attorney (or have the title co) do the research to determine if the title is marketable and insurable.

If you got a full 30-Year Title Search (in some states its 40-year state statute requirement) prior to your purchase, and there were no clouds then it can be used - as this is a requirement for Title Insurance, Purchases, Title Opinions and evidence for Marketable Title.

Lillian Shi · Answer

Thank you Chad,

yes, we did the title search before auction. how title company work with property like this? they will do the title search and then decide whether to offer a insurance or not?

Chad U. · Answer

@Lillian Shi

Yes, hire an experienced RE attorney who is well versed in foreclosures!  Especially for your 1st purchase.  I'm assuming you had someone do a title check before the purchase to ensure there were no other liens that would survive foreclosure?  You want to make sure that you can obtain insurable and marketable title once you go to resell again.

And no, you won't get a key.  You'll need to hire a locksmith to get the locks changed - this is assuming the property is vacant, otherwise you'll need to evict the current occupant.  However, if the occupant is a tenant on an existing lease, you'll need to wait until the existing lease expires before you can move them out.

Good luck!