What is title insurance and can I purchase it and have it work in a foreclosure auction scenario?

Question

The way my county works, all bank-owned foreclosures are sold through a public auction that requires 20% payment at end of auction. I heard that title insurance protects against unknown liens against the property which could very well happen in this situation. Please advise I can't pay rent anymore.

Answer 1

You are correct in your assumption of what title insurance provides. Before a title insurance firm will provide insurance, they will perform a search of the condition of the title covering the property in question. Contact a local title insurance provider and explain to them what you propose to do, and they will advise you accordingly, as to what liens may be against the property.