When you are buying foreclosed properties owned by banks or bank foreclosure homes, you get the realestate title policy without any exceptions. Foreclosure homes are basically categorized into two types pre foreclosures that come from the public notice filing to evict and realestate Owned or REO, which are homes ? Why buying foreclosed homes is a good investment? Additionally, there are no back taxes to be paid, as the banks have paid everything at the closing and the home is vacant for you to move in at your own convenience. When you are purchasing bank foreclosed homes, you have already managed to make a significant amount of money on the land. For a free list of bank owned foreclosures, please feel free to browse through bank foreclosure homes or contact us. This is because compared to any other form of realestate buy; there are no issues of land title attached to the land. As you are paying a realestate price that is about 10% to 50% below the market value, the moment you close the deal, the land has equity.
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Source: http://www.mexicanrealestate.net/2012/08/when-you-are-buying-foreclosed-properties-owned-by/
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