Baltimore County/Middle River/Essex Auction Properties
Hi!
I am looking to buy a bank owned house off auction.com and I have never done this before so I was hoping I could get some questions answered.
Here is an example property - Link
Do I have to worry about potential leans or any title issues if I use the title insurance they have as an option? How does the right of redemption work?
Thank you!
@Craig Choksey it depends on the terms of sale. I didn't see any terms of sale. When I saw the part about title insurance, I felt it could be interpreted to mean you may not be able to get title insurance in which case you get a quit claim deed that may be worthless.
There is a like to title info if you register. I didn't bother so I don't know if that is useful or not. My guess is it is probably not going to be useful to you, since you are asking the question in the first place.
A typical real estate contract says something like "Seller to provide title free and clear of all liens and encumbrances" In other words, you get clear title. But the contract or terms of sale do not have to say that, and that is a risk.
Hello,
I bought property off auction.com in the past few months. Redemption is state specific. Here in Tennessee it is not an issue, there is none. Owners give up that right when they get a mortgage.
Their title insurance seems to be hit and miss, depending on exactly what company is doing it. You can choose your own and pay for it. That is what I recommend. With theirs they take all issues and instead of figuring them out and clearing them they just put them under the exceptions and you are stuck with the issue e.g. title is not ensured against the bankruptcy that was filed by the owner or for the construction lien filed against the property. Use your title company and they should clear everything.
Whether you get a quit claim or deed is based on if you choose to get title insurance--its your choice.
Their title is mostly cleared, some owners-the banks- do not clear the utility bills that are attached to the houses...and generally not recorded against the title.
