Insurance policy protecting against unforeseen Fed tax liens, judgements, etc, on auction purchases?


#1

Sean, is there an insurance policy available protecting investors in the event they purchase a 2nd deed of trust at auctions?


#2

By and large I’d say no, but you can try talking to your local title company about doing a prelim prior to sale and issuing a limited title policy that would exclude coverage for things like eviction, being sued by the owner, having the sale over turned, etc.

I personally think this is a big opportunity for title co’s and in many ways less risky then their normal business as a trustee sale wipes out a lot of potential claims by its very nature. Still, don’t expect them to be receptive. I know one title co did do this at least on a trial basis for a while.