The title insurance company does the background title work to make sure you get clear title, and then they guarantee their work with an insurance policy.
Most people do not have the time, skill or background to do their own title work so it makes sense to let the title insurance company do this work.
From my understanding is NO title company will sell your title insurance for foreclosure homes at auction. You can call title company near your home and check for yourself.
1-STOP Realty Group
900 E. Hamilton Ave. #100
Campbell, CA 95008