I am new here to BiggerPockets and have been in the education phase for about 6 months. I am interested in a foreclosure right down the street from me that is to be auctioned on auction.com. I have been learning about due diligence and have a couple of questions regarding my title search thus far:
1. The auction mentions buyer may receive a Special Warranty Deed or equivalent if able to purchase title insurance without delaying closing. Otherwise buyer will receive a Quitclaim Deed. Can someone expand on what this means, particularly the difference between the two deeds.
2. I reviewed the title information provided by auction.com and also searched the county record of deeds online. Both show two mortgages and one assignment. The first mortgage is for $30k in 1990 later assigned to a different lender in 1997. The other mortgage is for $22k in 1993 to the same mortgagor with a different lender than either associated with the first mortgage. If I were to bid and win the auction, would both of these mortgages be released or could I be responsible?
Thanks in advance for any advice.
You need to find out who is foreclosing the 1st or 2nd mortgage. if the 2nd is foreclosing your still responsible for the first.
Call Matt Einheber at Transfer Properties
I guess I should have mentioned this property is bank owned and was recently foreclosed on. This being said, would I still be responsible for the second mortgage?
No, this is why you get title insurance.
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