Sean, is there an insurance policy available protecting investors in the event they purchase a 2nd deed of trust at auctions?
Insurance policy protecting against unforeseen Fed tax liens, judgements, etc, on auction purchases?
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.