Special Warranty Deed/REO/Owner Prior to Bank, Title Q
Hello all,
We are inching towards closing. I am still confused conceptually about one thing. We are buying a REO, Special Warranty Deed studio condo from auction.com. The title/closing company is great. The only question I have is, when I first contacted the title company, I was concerned about the owner prior to the bank, I told them my concern and they said yeah "So and So (NAME)" the bank did a prelim on them, they are clear. My question is not about whether this title company is good or not. My question is, in the purchase package from the title/closing company, the search stuff (I think they will do a final rundown 24 hours prior to closing) but it was the bank's name. I guess it makes sense since I am working with the bank here ("So and So Asset Trust"). But since I am getting a special warranty deed, and reading the description from google what that means, how can I be covered for anything having to do with the owner prior to the bank. The owner prior to the bank foreclosed, and the bank had to take it back. The bank when they bought it back did title work, but since I am getting a special warranty deed, how can I be insured against anything that happened during that transaction?
Thanks & Regards,