Notice Of Trustee Sale
I understand that notice of trustee sale is the first document to get info from when going to auctions. From the notice using the name of owner or clerk's # is used to find the deed info to check for liens, but this is where i can't go pass it, I don't seem to understand where is the lien info on the deed. is the any article or if someone who understands the process help me out. Thanks.
The type of document (notice of trustee's sale, notice of default, lis pendens, complaint) is not the same nationwide, it just depends on what is commonly used in your state.
Liens will not appear on the deed document itself (although, a more permanent encumbrance can...like an easement). Otherwise, a new deed would have to be drafted every time a lien appeared or a lien was satisfied. A lien is simply a monetary claim against a piece of real property. Some are voluntary (you sign for a loan) and some are involuntary (you don't pay your utility bill). In addition, some are specific (attached to one specifically named property) and some are general (attached to any and every property of the owner throughout the county).
If you are searching for liens since the present owner took title, you must search for all records appearing after the recorded deed up to the present date. Look for documents that bear any of the owner(s) names (since more than one name might be on title). Examine each document you find to see if it either attaches to the property (it will have the same legal property description), or attaches to owner directly (like a judgment or an IRS lien).
For a basic, bare minimum search, go back in time until the last title insurance policy was issued (or whatever title guarantee is used in your state). For a thorough search, go back in time for 60 years. This can be time consuming stuff.
In most cases, the earlier a lien is recorded the more seniority it has (a first mortgage or trust deed will have a very high seniority, if not the highest). You will need to understand the seniority of liens, your state's statute of limitations of various liens, which liens automatically attach in a senior position, and which liens automatically subordinate themselves. There are other encumbrances that may affect title such as easements, CC&Rs, etc.
Ask if someone at your local REI club would be willing to walk you through one. Hang out at the recorder's office and nicely ask the folks that come with laptops (or at least an impressive attache case) if they are researching title and if they wouldn't mind showing you a thing or two. Even ask the clerks that work behind the desk.
There's also a decent chapter on title searching in Bryan Wittenmyer's book "The Hidden Secrets Of A Real Estate Technician". And I've even seen an online course at www.learntitlesearching.com (I have not taken it and don't know anyone who has so I can't vouch for it).
Good luck.
thanks for all the info. I do realise the attending auctions requires a lot of preprations. When I was at the county clerk's office I did see someone who had a laptop for research, and I asked for little help, but I was so unprepared I did not want to intrude the person much more. I think attending the auction itself will be a great learning experience for me, and hopefully I will have done enough research for the next time. Thanks again.