How to interpret title report

Question

Hi, all! First post here! I'm doing research on auction.com and some of these properties have title reports attached to them, but they are all different and all equally unintelligible to me.

For example, one title report says, "Title Grade: D . Reason for grade: Foreclosure deed not recorded 90 days / State specific redemption periods / FC Judgement 90 days / FC Mortgage 90 days."

Googling these terms comes up with nothing for me. I've attached links to two reports that I'm confused about. Is there anything in these reports that would lead me to believe that there are liens or anything that would get passed on to me?

https://cdn.mlhdocs.com/auctions/auctions35979/2679093-ptr.pdf

https://cdn.mlhdocs.com/auctions/auctions35999/2564390-PTR.pdf

https://cdn.mlhdocs.com/auctions/auctions35979/2664635-PTR.pdf

Thank you!

Lynnette E. · Answer

BUT you have to be real careful because some of their auctions are not for first deeds!  And they do not clearly say that!

And also, depending on what bank has the property that may or may not pay for the back utilities or HOA fees.

I have bought 2 properties through auction.com, but it is buyer beware!  Not just for the title but the condition too.

And I struggle with reading their reports too.  Wish they would do some pod casts with title folks to explain it to us!  How to figure out what loan is being foreclosed and its place-first, second, HELOC, down payment, etc., how to figure out what debts. liens etc. there are, and also how to figure out the status of a bankruptcy that appears.  So many things!

Tom Gimer · Answer

@Lynnette E. All the information is out there.

What lien is being foreclosed? Check the advertisement. It should identify the instrument by recording info.

What priority is this lien? Learn to search land records. Identify the deed in to the current owner. Identify all mortgages and releases since acquisition.

Junior liens -- other than those with superpriority, check local laws -- will be extinguished by the foreclosure if properly noticed. That notice is typically found in the docket of the foreclosure case.

BK status? That can be found on PACER... free to the public.

Wayne Brooks · Answer

When buying reo’s none of this matters in 95% of cases as the property is being sold with clear title and title insurance. Not sure why auction.com does this but it causes unnecessary confusion. In the rare cases where the buyer IS assuming some lien, then yes, it matters. Read the auction terms for the specific property.

Also, use a local agent for help as auction.com automatically pays a commission.

Also, use a local agent for help as auction.com automatically pays a commission.

Tom Gimer · Answer

"Orange Coast Lender Services will clear all open title issues / outstanding liens prior to the closing..."

How to interpret title report

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