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Complex Title Situations in Distressed Properties

13 minPRO
2/6

Key Takeaways

  • Property tax liens, IRS tax liens (if filed 30+ days prior), and municipal liens survive foreclosure.
  • Quiet title actions cost $2,000-$5,000 and take 3-12 months.
  • Standard title insurance may not cover auction or tax sale acquisitions.
  • Never acquire without understanding the title situation—title risk can exceed property value.
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Test Your Knowledge

1.Which liens always survive a foreclosure sale?

2.What is the typical cost and timeline for a quiet title action?

3.Why might standard title insurance be unavailable for auction purchases?