Trustee's Sale Guarantee
I'm looking at attending a non judicial foreclosure and bidding at the courthouse. A preliminary title search shows that the note and DOT foreclosing is the only lien. But I'm concerned with possible IRS liens or a last minute BK filing - or anything else that could cloud the title.
I've read that the trustee orders a TSG or Trustee's Sale Guarantee. This is a title policy that, depending on who you're talking to, ensures the lender or high bidder, clear title. Is this actually the case? Anyone have any experience with this?
Thanks,
Calvin
Yes the Trustee's title policy guarantees that all interested parties have been setforth and the priority of the liens and judgment is established. It's insurance for the lender's protection. I have never been able to obtain a copy. I have heard that it can be obtained -I guess I just know the right people.
If someone files BK before the sale, there will be a stay and the sale will be postponed. After the sale you don't care what the previous owners do-it wont affect the property- Unless, the defaultee can prove some glaring error in the forecloure procedure, fraud, predatory practaces, www.etc.etc. (:Rarely happens).
You can ask the Trustee if there's an IRS lien (which you should be public record and which you can research).
If one exists you can ask the Trustee if the IRS has been notified of the pending www.auction.This almost always the case since this is standard procedure. If the IRS has been put on notice, they can redeem the property within 120 days, If they haven't been put on notice they can redeem the property within 180 days.