Posted by Irwin on December 05, 1998 at 07:36:28:
Both deeds pass fee simple title. The special warranty deed warrants the title against claims arising only from acts of the grantor. A general warranty deed warrants title against all claims period.
Obviously, a General is better than a Special, but most banks selling REOs give only Specials, even though they obtained title insurance after the foreclosure. They don’t want to be brought into litigation if some titile defect wasn’t cleared up in the foreclosure process.