So Ive been looking into buying a house on auction.com or other sites. I hear or read a lot about possible liens, not having clear title etc. My attorney says they have to guarantee clear title.... so why do I hear otherwise?? Also what is the difference when the house is listed as a Forclosure and a REO. ( I understand these terms obviously but whats the difference to list them that way on auction.com?)
All the auction properties I have purchased have all been turned over with a clean title. There is not difference between REO and Foreclosed in terms of auction.com's selling matters. They all sale and close the same.
Auction.com lists several different types of sale. The process by which the bank take ownership are "foreclosure sales" and they are listed on auction.com. If you click on one of the "foreclosure sale" listings you will get redirected to the local online auction and will be in essence bidding against the bank that is foreclosing on the property. All of those properties are subject to any liens on the property and you will not be getting a warranty deed. Auction.com has nothing to do with these auctions, they are providing market assistance for the local auction. The "bank owned" listings have been foreclosed on already and commonly known as REO (real estate owned). They are being sold with clear title in most cases. Unless you are a very experienced investor don't even bother with the foreclosure sales. Auction.com and xome.com both list the foreclosure sales mostly to take up space and attract eyeballs. In Broward County FL there are only 3 REO properties being auctioned by auction.com, the other 185 are foreclosure sales.
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