Hi Peter,

Our company receives REO listings and the Title process works exactly the same as a standard purchase.

You, as the buyer, will receive a Preliminary Title Report and Title Insurance. The seller must provide you with a clean title.

If you are going the route that Steve mentioned below in terms of auctions, we suggest you attend some first as they are a feeding frenzie and require a high level of expertise.

Best to you,

Mark and Kari Shea
San Diego Real Estate Experts
Foreclosure, Short Sale & Investment Specialists,
Development Opportunities & Traditional Real Estate

Peter, if you are buying a REO offered via a Realtor MLS you should be fine, I haven't seen one REO addendum that did not assure clear title upon transfer.

If you plan on going it alone at a public foreclosure auction you will need to be sure you have researched all liens on the property BEFORE you make any offer.

Each auction company will have their individual process posted on their website to tell you about deposit requirements and how to view the homes. You have to have a cashiers check for deposit at a public auction. Seasoned bidders will have multiple cashiers checks of different denominations to make up a particular bid of a home.

These auctions allow the bank(s) to unload lots of properties faster in this "bid-up" environment. It's really more of a pressure sales environment. I'd stay clear of these sales-oriented auction properties. Although you do get some time to do inspections, this is really a process for someone who can walk into a house and know what it will cost to place it back into shape. You can pay to have inspections done, but this might cause you to bid up the price of the home during auction time so you don't waste your money paid for the inspections. Really, if this is what you are considering, there's no reason to be in an environment whose sole purpose is bidding-up a property's price.

Best, Steve

I have heard of some problems with title. Use a good co.Ask questions.

Good luck,
Joan Wilson
760-757-3468

Tony is correct regaring the title insurance.

To search foreclosures you can go to the URL listed below.

Good luck!

Well,
If you are relying on a mortgage to finance the purchase your lender is going to require a title insurance policy and the title company will normally not provide a title policy without being able to convey clean title. That is what the title insurance policy is designed to protect you against.