Mayra Espinosa Realtor San Mateo Pacifica Homes, San Mateo County Real Estate | Buy | Sell | Invest (Mayra Espinosa Broker- Realtor | Call 650-996-8961)

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Rainmaker
938,650
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

And if you're buying REOs, you're going to see special warranty deed.
Title is warranted only from current sellers acquisition to present.
You are going to want to read that preliminary title report very carefully. And make special note of exceptions.

Jun 09, 2018 10:55 AM
Rainmaker
612,606
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

The title insurance protection is diluted to the buyer. It warrents only since the current owner had the property.

On most regular transactions, buyer will get a "general warranty deed"...a title guarantee from way back when prior to current ownership.

All REO's only give a special warranty deed.

Eve

Jun 09, 2018 10:30 AM
Ambassador
5,701,526
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

We generally see these with detached sellers like banks, attnys, and estates.

Jun 09, 2018 10:36 AM
Rainmaker
4,303,179
Richard Weeks
Dallas, TX
REALTOR®, Broker

Seller will warrant deed only for the period of time they owned it.  If you have title insurance so what.

Jun 09, 2018 10:31 AM
Rainmaker
4,511,808
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Is it limited as to the warranties, but OK if you have title insurance!

Jun 09, 2018 10:28 AM
Rainmaker
1,708,235
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Not to worry as long as they have title insurance. This is normal for an REO.

Jun 09, 2018 10:26 AM
Rainmaker
601,096
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

During the recession, we saw a number of bank addendums noting how title would be conveyed. Special warranty deed only insures title during the time the current owner has been in ownership and will not warrant for title issues from previous owners. One bank addendum I saw was so vague that they basically said at closing title would be conveyed however the bank decided - even as a quit claim. In this case, we heavily suggested our buyer purchase extended coverage to protect them - which they did. 

Jun 09, 2018 12:36 PM
Rainmaker
1,347,522
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Candice A. Donofrio nailed this. I was going to offer similar comments, I did many REO & pre-foreclosures in 2007-2011 and that was quite common.

Jun 09, 2018 12:06 PM
Rainmaker
4,245,512
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Marya- - -the ActiveRain membership comes through once again. 

Jun 09, 2018 11:35 AM
Rainmaker
536,557
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

It's OK but get owner's title insurance.

Jun 09, 2018 10:31 AM
Rainmaker
2,102,329
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Fred Griffin has your answer 

Jun 10, 2018 06:23 AM
Rainmaker
6,968,613
Roy Kelley
Retired - Gaithersburg, MD

Do some reading. Make sure your buyers get title insurance.

special warranty deed is a real estate deed by which the seller only warrants or guarantees the title against defects in clear title that may have arisen during the period of its tenure or ownership of the property.

Jun 09, 2018 06:49 PM
Rainmaker
1,549,505
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Might be title issues, make sure to discuss it with your title people before removing all contingencies. 

Jun 09, 2018 03:11 PM
Ambassador
2,605,038
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  The Seller (the bank or institution who owns the REO) will only defend (warrant) the title since the time that they  took ownership.

   Strongly suggest, have a Title Attorney do a complete Title Search, and get Title Insurance that covers it all the way back in time.

Jun 09, 2018 01:15 PM
Ambassador
3,145,971
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Fred Griffin has this covered as do many others.  Title insurance offers some protection for your buyers. I say some protection because buying a home at an auction comes with its own inherent risks. 

 

Jun 10, 2018 11:23 AM
Ambassador
4,512,965
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Fred Griffin stated it perfectly for you, Mayra!

Jun 09, 2018 07:02 PM
Rainmaker
1,425,250
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Candice A. Donofrio has you covered.

Jun 09, 2018 12:32 PM
Rainmaker
868,248
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

It's Special!

Jun 09, 2018 05:11 PM
Rainer
87,920
Jeff Perlis Prime Properties
Prime Properties - Lake Arrowhead, CA
Experience Your Own Transformation!

REOs perks.

Jun 09, 2018 05:07 PM
Rainmaker
5,579,354
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

This is another reason all agents would be wise NOT to wear "the attorney" hat.... every client of ours has an attorney and the attorney would respond to that topic.... in our area, it's a quick claim deed that's given....

Jun 09, 2018 02:54 PM
Rainmaker
808,903
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

What Candice A. Donofrio and Mike & Eve Alexander said. -K

Jun 09, 2018 01:40 PM
Rainmaker
5,767,421
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

The ever wise and lovely Candice A. Donofrio has your answer. A

Jun 09, 2018 01:10 PM
Rainer
353,799
J.R. Schloemer, CRS
Kentucky Select Properties - Louisville, KY

Like Candice A. Donofrio said. I can't say it much better. Just get the title insurance like others suggested.

Jun 09, 2018 12:55 PM
Rainmaker
3,070,784
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Candice A. Donofrio nailed this one!

Jun 09, 2018 12:50 PM
Rainmaker
1,002,193
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

No point in my repeating what has been correctly answered several times here from others.

As I read through, I gave the appropriate "upvotes".

Jun 09, 2018 12:48 PM
Rainmaker
4,435,346
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

This is a legal question that should be addressed to an attorney for additional detailed clarification. REO properties are generally transferred with a special warranty deed versus a general warranty deed. They only warranty for the time of ownership and you should be sure title insurance coverage is good.

Jun 09, 2018 12:29 PM
Rainmaker
4,799,701
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Your title agent or attorney can explain it to you.

Jun 10, 2018 06:24 AM
Rainmaker
3,376,874
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I list and sell a lot of REO properties and deal with the SWD all the time. The deed is noting the foreclosure and the seller is warranting teh time the owned the property. The best way for a buy to insure themselves is get owners title insurance. 

Jun 10, 2018 05:58 AM
Rainmaker
1,759,689
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

REO's are the only ones I know of that receive it. Attorney question.

Jun 10, 2018 04:54 AM
Ambassador
4,316,065
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

San Mateo County Broker Associate Mayra Espinosa - working with the attorney helps a lot.

Jun 09, 2018 11:33 PM
Rainmaker
3,986,000
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Usually it is a deed that has been taken back by a lender or county

Jun 09, 2018 08:42 PM
Rainmaker
706,330
Abby Stiller
REMAX Realty Group - Cape Coral, FL
Professional Bilingual Realtor (239) 284-8637

Hi Mayra. I see you already got great answers.

Jun 09, 2018 07:58 PM
Rainmaker
4,433,809
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good luck.

Jun 09, 2018 05:26 PM
Ambassador
4,722,423
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Good learning here for those who did not know. Great question!

Jun 09, 2018 04:36 PM
Rainer
247,757
Byron K . Jones
Coatesville, PA
List Today - Sold Tomorrow!

well answered above

 

Jun 09, 2018 11:45 AM
Rainmaker
5,267,179
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

If the owner has never lived in the property, you will get a Special Warranty Deed.   Mostly here in Denver it is used by banks and builders. 

Jun 13, 2018 07:30 PM