Title, Liens & Hidden Risks: What Every Foreclosure Buyer Must Know

One of the biggest mistakes new foreclosure buyers make? Assuming that winning the auction means you own a clean property.

Not so fast.

This guide shows you how to avoid costly surprises by understanding title issues, lien risks, and how to protect yourself before bidding.

🧾 What Is “Title” in Real Estate?

Title refers to your legal ownership of the property — but it also means the history of who owned it before you and what claims are still attached.

If there are unresolved claims — like unpaid taxes or a second mortgage — those may survive the auction and become your problem.

⚠️ Common Title & Lien Risks

Here are some red flags that can stay with the property even after the auction:

• Unpaid property taxes (these usually survive)
• Second mortgages or HELOCs (depends on case type)
• IRS liens (federal liens can survive temporarily)
• Municipal violations (open permits, demolition orders)
• Unpaid water bills, utility liens, or HOA fees
• Mechanic’s liens (from contractors)

You don’t want to inherit someone else’s debt.

🔍 How to Search for Liens

We recommend a full title search before you bid. Here’s how:

• Work with an experienced title company or real estate attorney
• Check the county recorder’s website for public records
• Look up the case number for foreclosure status and claims

🛡️ Or better yet — use our team. We do this every day.

🧠 Understand Judicial vs Non-Judicial Foreclosures

In Illinois, sheriff sales are judicial. That means:

• A court case is involved
• A judge issues the sale order
• Certain liens get wiped out — others do not

Make sure you understand which lien position is being foreclosed — first mortgage? second? tax sale?

🧰 Tools to Help You Stay Safe

• Use our Foreclosure Cost Estimator to factor in back taxes, liens, and court fees
• Ask our team to run a lien check for any property before you bid
• Attend our member workshops to learn lien hierarchy by county

🚫 What NOT to Assume

• That the auction clears all debt (it doesn’t)
• That you can fix issues after the fact (some debts transfer)
• That county clerks or court staff will explain everything (they won’t)

This is where you separate amateurs from pros.

✅ Let Us Help You Avoid Surprises

We check title, liens, violations, and taxes on every property we represent.

Don’t risk your bid — let us do the due diligence, confirm clean title, and help you invest with peace of mind.

📩 Contact our team for a title review today.