Real Estate Auction — how do you handle lien risk before bidding?

Real Estate Auction — how do you handle lien risk before bidding?

Member since 2026 · 1 post · 0 votes

Hey everyone — I'm a program manager by background (not an auction investor myself) looking into whether there's a real gap in how lien risk gets checked before an Ohio sheriff's sale.

What I keep hearing: a full title/lien search takes a title company 1–2 weeks, but an auction closes in days — so investors end up relying on public record and experience, especially on the question of whether a junior lienholder was actually joined as a defendant (if not, that lien survives the sale and becomes the buyer's problem).

If you buy at OH auctions, I'd genuinely appreciate 10 minutes:

- Have you ever been burned by a lien that survived a sale you won?

- How do you currently check lien/title status before bidding — and does that process actually fit the auction timeline?

- Is this a real pain point for you, or is it already solved (title company relationship, experience, etc.)?

Not selling anything — just trying to understand if this is a real problem. Happy to share back whatever I learn. And apologies if this isn't the right sub-forum — point me to a better one if so!

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  • Coral Springs, FL · Member since 2018 · 486 posts · 106 votes
    2d

    Bhumi, I can't speak to Ohio sheriff sales firsthand, but the Florida tax deed side is a useful contrast for your research. There the joinder question mostly goes away. Before the sale the clerk has to send notice to the owner and lienholders of record (F.S. 197.502 and 197.522), and the deed then wipes out mortgages and most private liens. The exception is recorded liens held by a city, county or special district, which survive if the sale proceeds don't pay them (F.S. 197.552). So the pre-bid risk shifts to municipal and code-enforcement liens, which often sit outside a standard county records search, and to whether the case is still on the list on sale day. Most Florida lists get redeemed before the gavel.

    The timing gap you describe is real on both sides. Bidders end up doing their own public-records check because a full title search doesn't fit the window.

    If anyone reading has a Florida tax-deed case, post the case number/folio and I'll run a free pre-bid check.

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