Ask a 40-year records investigator: liens and title traps before you bid

Ask a 40-year records investigator: liens and title traps before you bid

Real Estate Consultant · Phoenix, AZ · Member since 2026 · 14 posts · 9 votes

I've spent about forty years digging through public records for a living. Started as a kid at a place called Auto Recovery Bureau on Telephone Road in Houston, finding people and property that didn't want to be found. These days I pull county records by hand for real estate folks — the liens, the back taxes, the breaks in a chain of title — and lay it all out before somebody signs.

I see the same thing over and over. A buyer does their homework on the house and skips the paper behind it. Then a federal tax lien, or an old mechanic's lien nobody released, or a deed that got recorded wrong, turns up after the gavel falls. By then it's their problem, not the seller's.

So, ask me anything about reading a property's records before you bid. What survives a foreclosure and what gets wiped. Auction title traps. How to spot a bad legal description. Where the county index quietly lies to you. I'll answer straight and I won't sell you a thing — I'd rather you learn to catch this stuff yourself.

I'm out of Phoenix, I'll be around this week. Fire away.

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  • Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 142 posts · 48 votes
    1d
    Quote from @Mark Caron:

    I've spent about forty years digging through public records for a living. Started as a kid at a place called Auto Recovery Bureau on Telephone Road in Houston, finding people and property that didn't want to be found. These days I pull county records by hand for real estate folks — the liens, the back taxes, the breaks in a chain of title — and lay it all out before somebody signs.

    I see the same thing over and over. A buyer does their homework on the house and skips the paper behind it. Then a federal tax lien, or an old mechanic's lien nobody released, or a deed that got recorded wrong, turns up after the gavel falls. By then it's their problem, not the seller's.

    So, ask me anything about reading a property's records before you bid. What survives a foreclosure and what gets wiped. Auction title traps. How to spot a bad legal description. Where the county index quietly lies to you. I'll answer straight and I won't sell you a thing — I'd rather you learn to catch this stuff yourself.

    I'm out of Phoenix, I'll be around this week. Fire away.

    Does an HOA foreclosure follow the same process as a lender foreclosure?

    • Real Estate Consultant · Phoenix, AZ · Member since 2026 · 14 posts · 9 votes
      21h

      Good question, and no — they don't, and the difference is right where people get hurt.

      Start with priority, because that's the whole ballgame. When a lender forecloses a first mortgage, it generally wipes the junior liens off the property — the HOA lien included. Go the other direction and it usually doesn't work in reverse: foreclose the HOA lien and the first mortgage typically survives. So the fella who "won the house" at an HOA sale for a few thousand in back dues can find out he took it subject to a quarter-million-dollar loan still sitting right there. He didn't buy the house. He bought the dues.

      The catch is it's state law, not one rule. A couple dozen states have what's called a super-lien — a slice of the HOA's past-due assessments, often six months' worth, that jumps ahead of the first mortgage. In those states an HOA foreclosure can actually knock the lender out (Nevada had a famous court fight over exactly that). So the first thing to pin down is whether your state is a super-lien state and how big that priority slice is.

      Process is different too. Out here in Arizona the HOA has to go through the court — a judicial foreclosure, a judgment, a sheriff's sale, and a redemption period after — while the mortgage lender just runs a trustee's sale with no redemption at all. Different track, different timeline, different rights for everybody involved.

      So before you bid at any association sale, two things: pull the record and see what mortgage is sitting senior to that HOA lien, and check your own state's statute on super-priority. Get those two wrong and a "cheap" house turns expensive in a hurry.

      Not legal advice — every state writes this its own way — but that's the shape of it.

    • Jay HinrichsBusiness Member
      Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
      19h

      Very good you were being tested and you passed !!!!!

    • Real Estate Consultant · Phoenix, AZ · Member since 2026 · 14 posts · 9 votes
      1h

      Ha — glad I studied. Forty years in, and the records still find new ways to keep me honest. Appreciate the good word, Jay. Coming from you, that means something.

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