Auction Title Search for Trustee & Sheriff Sales

An Auction Title Search is a process used to research and verify the legal ownership of a property that is being sold at an auction, particularly in cases like foreclosure or tax lien auctions. The goal is to confirm that the seller has clear title to the property. This is important as existing liens, claims, or other legal issues could affect the buyer's ability to gain full ownership or lead to financial loss.

Understanding Trustee Sales

A trustee sale is a public auction of a property that occurs when a borrower defaults on their mortgage. It is a key step in the non-judicial foreclosure process, meaning it does not require court intervention. The sale is conducted by a trustee, who is typically a neutral third party (such as a title company or attorney) appointed by the lender.

How a Trustee Sale Works:

1. Notice of Default (NOD): If a borrower stops making mortgage payments, the lender issues a Notice of Default, giving the borrower a chance to catch up on payments.
2. Notice of Trustee’s Sale: If the default is not cured, a Notice of Trustee’s Sale is recorded and published, stating the date, time, and location of the auction.
3. Auction: The trustee conducts the sale, usually on the courthouse steps or online. The property is sold to the highest bidder, often as-is and for cash.
4. Winning Bidder Takes Ownership: The highest bidder receives a trustee’s deed, transferring ownership of the property.

Key Points to Consider:

• Order a Trustee Sale Title Search from a trusted vendor prior to the auction to determine if the property would be a good investment.
• The starting bid is usually set at the amount owed to the lender, plus fees and costs.
• If there are no bidders, the property reverts to the lender and becomes Real Estate Owned (REO).
• Buyers often cannot inspect the property beforehand.

What is a Sheriff Sale?

A sheriff sale is a public auction of a property that has been repossessed due to foreclosure or a court judgment. It is part of the judicial foreclosure process, meaning the court is involved. The sale is conducted by the county sheriff's office or another law enforcement entity. Before attending the sale, it is crucial to order a Sheriff Sale Title Search to familiarize yourself with any debts tied to the property.

How a Sheriff Sale Works:

1. Lender or Creditor Files a Lawsuit: When a borrower defaults on their mortgage or fails to pay a court-ordered debt, the lender or creditor files a lawsuit.
2. Court Issues a Judgment: If the court rules in favor of the lender or creditor, it issues a foreclosure order or judgment lien.
3. Notice of Sale: The sheriff’s office publishes a notice with the auction date, time, location, and terms of sale.
4. Auction: The property is auctioned to the highest bidder, usually at the county courthouse or another public location.
5. Winning Bidder Takes Ownership: The highest bidder receives a sheriff’s deed, transferring ownership, though some states allow a redemption period where the original owner can reclaim the property.

What an Auction Title Search Includes

An auction title search, or a foreclosure auction title report, is a crucial step in evaluating a property before bidding at a foreclosure auction. It helps identify potential risks associated with the property's ownership and financial history. A title search for foreclosure auction includes:

1. Ownership History: Identifies the current and previous owners by providing the deeds recorded in the county.

2. Outstanding Liens & Mortgages:

• Checks if there are unpaid mortgages, deeds of trust, tax liens, municipal violations, and HOA liens that could become the buyer’s responsibility.
• Identifies judgment liens (e.g., unpaid debts, lawsuits) that may still attach to the property.

3. Property Taxes & Assessments: Determines if there are delinquent property taxes that could result in further penalties or additional foreclosure actions.

How ProTitleUSA Can Help

ProTitleUSA offers several useful products that can help determine if purchasing a distressed property at auction is a good investment.

• Two Owner Title Search (Foreclosure Search) will detail the ownership history going back two owners. A detailed tax status is provided which specifies all delinquencies including penalties and interest. Open mortgages/deeds of trust are reported along with all associated documents (assignments, modifications, foreclosure proceedings, etc.) Judgments and liens recorded in the county on the property and/or against the owner are also provided.
• Township Search for Unrecorded Liens with Demolition Check will search for municipal liens that are not recorded in public records. This includes items such as code enforcement violations, building violations, open/expired permits, demolition check, special assessments, etc. This service is extremely helpful as these items are not found on a standard title search but can have a severe impact on your investment.  
• Tax Sale & Redemption Search with Water/Sewer Balance Check is a re-verification of taxes by contacting the treasurer directly to accurately capture the delinquent tax payoff.  It will also include a water/sewer balance obtained directly from the municipality.

Why Choose ProTitleUSA?

ProTitleUSA is the best title search company for foreclosure auctions as we will  uncover hidden liens, unpaid taxes, and legal claims that could impact your investment.  Our reports provide detailed ownership history and reveal any potential title defects before you bid.  Select our expedite service to get the results quickly so you have time to evaluate risks before the auction.

Order Your Auction Title Search Today

Place your order on our website, over the phone at 888-878-8081 or by email at info@protitleusa.com