Profile picture for alexvzb

Bank owned property for sale

I,m interested to by foreclosed property from Wells Fargo/Bank of America (Certificate of Title was issued by the Clerk of Court to the bank on October 5, 2011).

Bank contract offers only "Special Warranty Deed"
and "Standard ALTA Homeowners Policy of Insurance"
and requires $5k deposit to be held in escrow by the bank
agent

Q: Will "Special Warranty Deed" and "Standard ALTA Homeowners Policy of Insurance" protect me from any other claims and outstanding liens ?

Q: If "Special Warranty Deed" and "Standard ALTA Homeowners Policy of Insurance" will not protect me from any other claims and outstanding liens - what do I need to protect my self in Bank foreclosed sales ?

Sincerely,
Alex

  • January 02 2012 - Boynton Beach
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Answers (6)

Profile picture for Lmiller1955
Hi Alex, Are you working now with a title company ? you may be ok as far as liens on the property from the home but there might be liens from the city, violations , fines etc that the county has assessed , the Title company will usually verify city liens also.  Water bill is never erased by the deed as it always needs to get paid. If I can be of anymore help, please call me , [phone number deleted by Zillow moderator.  Please refer to our Good Neighbor Policy for posting rules],  thanks Lyn Miller
  • January 02 2012
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Profile picture for craigfial
The policy will protect you from liens, and banks issue Special Warranty Deeds only.
I would double check to make sure it's still available.  These properties are selling faster than hot cookies out of the oven.
  • January 02 2012
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Banks that own foreclosed homes will only issue 'Special Warranty' deeds.

A Special Warranty deed will only cover the period from when the bank took possession of the property to the day they sold it to the buyer. They won't take responsibility for any title issues prior to their owning the property.

Check with the company that is providing your title insurance to determine what is covered with their policy. Make sure you have an owners policy as well as a lenders policy. Title insurance is a must when buying a foreclosed home.

  • January 02 2012
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Profile picture for alexvzb
Thank you for your reply,

As per proposed bank contract - title company will be selected by the bank,
and issue only "Standard ALTA Homeowners Policy of Insurance".

Q: Is my understanding correct - that I will not be covered for any previous  claims and liens ?

Regards,
Alex

  • January 02 2012
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Hi Alex,

   The bank may only cover the liens from the time they took possession, but the title company will search further back than that.  Please do yourself the favor of spending a few more dollars and hirig a real estate attorney to represent YOU at the sale.  That will give you extra peace of mind that your intrests are best represented.  Ask your Realtor for a referral to a real estate attorney or if you like you can contact me and I will give you a couple referrals.
  • January 03 2012
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Profile picture for alexvzb
Thank you, you right.
Can you please give me couple referrals.
  • January 04 2012
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