Foreclosure Auctions and Encumbrances

[BW Miller]

I'm investigating a possible property purchase through an online auction. A lot of online FAQs and websites talk about possible encumbrances attached to the asset, be it a mortgage, or a judgment or a tax lien. 

For each sale, the auctioneer is required to create a Notice of Encumbrances (Form 2434-B) which lists out what possible encumbrances were found during their research of the asset. While they "can not guarantee its accuracy, it is a good faith search in an effort to provide the bidder with the information".

Can anyone provide more detail on what the encumbrance risks are here?

How could you offset those risks?

Would love to hear from any folks with experience purchasing foreclosures at auction. Thanks