MD Trustee foreclosure and Title Insurance -Dilemma

[Jacob Beg]

Hi All-

Generally, I stay away from purchasing condos at trustee auctions. I purchased one recently and it appears to have 25K worth of past due condo fee. There was a junior condo lien recorded against the property for a much smaller amount but I figured it will be wiped out. MD statute indicates that if the foreclosing deed was recorded after Oct, 2011 condo assoc can collect no more $1200 as a superior lien-this is not applicable here as the foreclosing trust was recorded prior to 2011. 

The settlement company is suggesting that I have to pay 25K. I am getting a mortgage on the property and required to get Title insurance. It's been suggested that unless that amount is paid, I cannot get title insurance. Does that sound right?

And is it worth purchasing it in cash without title insurance as I plan to flip it in two months? Will this cause issues down the line for the prospecting purchaser relying on a mortgage as he/she might struggle to get Title insurance for the same reason?

Any suggestions?

Thanks!