buying properties through

11 Replies

So I have seen a few threads in regards to however it doesn't seem to be anything recent.  I have purchase from in the past and they are not very easy to deal with.  It is almost impossible to talk to anyone that seems to know anything and you get a BS answer when you ask a question.  

So I am in the process of purchasing another property from them and according to the language below I assumed that if I was paying for the title insurance then I would get a Special Warranty Deed.  In the initial paperwork that they sent, I checked the box to pay for the Title Insurance, but when I received the sales agreement, it states that I agree to a quitclaim deed.  When I called them and told them that this was incorrect,  they told me that I need to work that out with the closing company and I was responsible for the title insurance. So below is the language that was in the auction listing: 

  • Buyer may receive a Special Warranty Deed or equivalent if Buyer is able to purchase title insurance without delaying the closing (title fees typically cost between $500 and $1500 and are based on the purchase price of the property). If buyer does not purchase title insurance, buyer will receive a Quitclaim Deed or equivalent, with no express or implied warranties of title.

So I am really confused.  Can anyone help me to understand this language?  Did I just buy a property that still has a lien against it?  I thought that the bank was responsible for clearing all previous liens before auctioning the property.

Please help?

You're getting title insurance, which will verify there are no liens/clouds. Here, a QCD makes no difference at all.  Typically, a Special Warranty Deed doesn't really help you, as they are only warranting the title against issues only during the time that They owned it anyway.  Also, if they provide the title insurance they usually only do a search for recorded liens, excluding unrecorded code violations, utility bills, etc. and they have a bunch of stuff excluded in the B section of exclusions....not very reliable.

Hmm. Are you using your own title company of choice or the one already written into the Auction.bomb contract?

I wish I could take credit for that URL but I saw it elsewhere on BP.

I am also going through the same process with That is how I found this thread. I have requested to get title insurance through their co. Servicelink. My main concern is getting clear title. Should I be doing something different? Any advise would be appreciated. (now Ten-X?) has found a way to squeeze more money out of each deal. They promise a warranty deed if you use their title company but only a quitclaim deed if you don't. That's pretty low and worthy of a closer look. 

I'll just share an experience I had with buying title insurance from the title company that uses.  I paid the extra money for the title insurance and received the title commitment.  But a few months later when I go to sell the property I ran into a problem.  Once I got a contract I forwarded it to my title company for closing.  They of course do a title search and it turns up an open mortgage.  I'm thinking how can that be?  When I bought the house and paid for title insurance they should have run a title search and discovered the open mortgage.  Well the search they apparently did was half *** and then they were no help at all getting it resolved.  Long story short, I did get a letter of indemnity eventually but it was a pain in the ***.  Next time I work with I will have my own title company perform the title search and handle the closing.

@John Frank Have you received any news or information on this besides the posts? I am currently looking at a house I want to purchase on and was wondering the EXACT same thing you discussed on here. I do not want a quit claim deed.

I purchased a great house on back in 2012, and it came with a lien from the City for mowing/landscape. Buying from Auction back then was like buying a used car, buyer beware. It was a great deal and has tripled in value since my purchase, so who am I to complain. I'd still buy from them, but as @Matt Stewart has shared, I would have my own title company close the deal. doesn’t even promote their own title service when buying from them.

In fact, they recommend you use your own. Why anyone wouldn’t is beyond me.

Be it hubzu, xome, auction, none of it good. Too much risk to try something on the cheap.

Real estate attorney... find, utilize, pay, and then you’ll sleep at night. I’s dotted, T’s crossed.

Status update:  So I opted for the title insurance and to close using there title company.  I later tried to have it changed to my attorney for closing however was unsuccessful.  I did send my contract to my attorney for review and was told to not sign the purchase contract.  He told me that it was very confusing and contradicting as to what I was buying.  I refused to sign the purchase contract and tried to explain my issue with however I got the same scripted comment from them each time.  You should do your due diligence before bidding.  Also, told me that title insurance was my responsibility and that is why the Quitclaim Deed was in the contract.  I tried to explain to him that I chose to pay the title insurance so I should be receiving a Special Warranty Deed.  Again, told I was responsible for title insurance.  No sh#*, however was also told that if I pay for the title insurance I would get a Special Warranty Deed.  Regardless, I never signed the agreement by there deadline so they canceled the purchase.  Wish someone at would have had an unscripted intelligent conversation with me and worked through the details.  

Originally posted by @David Weintraub : doesn’t even promote their own title service when buying from them.

In fact, they recommend you use your own. Why anyone wouldn’t is beyond me.

Be it hubzu, xome, auction, none of it good. Too much risk to try something on the cheap.

Actually, they've written ServiceLink into their contracts by default in the past. And -- shocking -- they own (or owned) a percentage of that title company.

Anybody who's ever dealt with ServiceLink knows that customer service is not on their list of priorities. Do it their way or get ignored.

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