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Foreclosure/lien found on bank owned property


i am in the process of purchasing a bank owned property.  the title insurance has turned up a 30,000 lien the previous owners took out against the property before bankruptcy was filed.  they then filed bankruptcy on said property.  the title insurance for me, the buyer, is going to try to get an exception written to void out the 30,000 on the lien.  if my title insurance won't do this, my lawyer is going to approach to bank's title insurance to include the exception.  is this normal.

Hey Bethann,

If you truly are buying a bank owned property then that lien should have been wiped through the foreclosure. You do not want to allow them to exclude the lien on the title insurance policy. There is a reason that they do this and you should not close on the transaction unless you are covered. It is not normal that liens show up after foreclosure, but if they do it usually means that they have to reforeclose on the property to wipe any liens.

I hope that helps.



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Brian Pitcher


I can answer all questions in regards to short sales, strategic default, foreclosures, loan modifications, and most questions regarding real estate law.


I have closed well over 100 short sales in the past 3 years and that is the work we primarily do. We teach people how to keep their home if they can or how to bail on it in the best possible way without any recourse. I have taught many public seminars to accountants, loan mod counselors, attorney's and also many other real estate agents all over the country. I also know how to deal with the very tough second mortgages in the negotiations as well as mechanic liens and default judgements.

I have a bachelors in Spanish with a minor in Economics from the University of Utah. I have also been a Realtor for 8 years closing well over 200 transactions. I am a KW instructor for Short Sales and Foreclosures.

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