Posted by Tony-VA/NC on February 22, 2004 at 09:44:01:
Kay, this is not legal advice nor is is necessarily specific to Maryland. In several foreclosures I have purchased lately, the foreclosing lender has used “pooling” companies to conduct the foreclosure. This adds a great deal of signatures to the pile and some seem to have been made in a rather reckless manner at times.
A title search is wise for a few reasons. Certainly you want to be sure what liens have been wiped out, were any missed, was anyone not notified that had a right to be, did everyone sign as they should etc.
A title search on the last one I closed on had several issues come up. Liens were overlooked prior to the foreclosing lender ever lending. Signatures did not identify the authority of people who signed. Simple mistakes that were corrected but it was the title search that found and solved these problems.
The question and answer below is on an auction company web site in the FAQ section. What does this mean? I thought that foreclosures being brought at auctions could have liens on them and that is one reason they are so risky…do I still have to do a title search and get title insurance…I am thinking of going to one and paying the deposit ($15-20K) but I am trying to find as much information on this before I do…any assistance is greatly appreciated…I live in MD.
What about other liens and judgements against the property?
All liens junior to the lien being foreclosed on are wiped out under Maryland law. Federal tax liens are first in line and if there is one it should be announced.