Title searches become especially critical for short sale and foreclosure transactions because liens on a property transfer with property ownership. That means that you could be stuck with an outrageous bill even though the previous owner caused the lien to occur in the first place if you’re not careful.

Indeed, any encumbrances incurred by the previous owner could become the next owner’s problem. And if that next owner is you, you may be in for a very unwelcome shock.

The July 2011 edition of Foreclosure.com’s free educational newsletter, “Investment Exchange,” is now available, which familiarizes you with title searches and how to get them done, for free if you’re so inclined (and diligent), as painlessly as possible.

Your success as an investor depends on it.

To read this month’s free educational newsletter from Foreclosure.com CLICK HERE.

Not funny “ha-ha,” but more like funny “uh-oh.”

First, SunSentinel.com passes along news that Elizabeth Bolinger was served with a foreclosure notice on an Oakland Park, Fla., condominium that she sold more than 14 years ago.

Here’s the reason, apparently:

“Bolinger was notified because while she sold the property as an individual in 1996, it was owned in a trust, meaning the transfer didn’t legally occur…. The loan’s servicing recently was transferred from Chase to IBM Lender Business Process Services Inc.”

Meanwhile, right up I-95 in West Palm Beach, Fla., there were 110 foreclosure sales in which the banks made no bids on the homes. As a result, investors on-site were able to snatch some of them up for as little as $200.

Sounds too good to be true, right? Well, it is, actually.

The Palm Beach Post explains:

“The transfer of thousands of files from the deposed David J. Stern law firm caused not just a foul-up in recent Palm Beach County foreclosure auctions, but is shutting down cases to the point that one defense attorney called the lack of action ‘malpractice’ … Unwitting investors put in winning offers as low as $200 for homes they’ll probably never get because the auctions were not properly advertised, likely lost in the shuffle from Stern’s office to other firm.”

Palm Beach County Clerk of Court Sharon Bock, who has to already be beyond overwhelmed with the mountain of foreclosure files filling up her courthouse, isn’t laughing about the latest hit in a years-long beating on the South Florida real estate market.

She said:

“As you try to solve one problem, you get another problem.”

The good news is that it appears that the worst (in this instance) appears to be over — there are only 15 foreclosed homes that were handled by Stern’s law firm headed for the auction block. Those sales will be canceled until further notice.

In the meantime, feel free to search what other foreclosed homes will be put up for sale in Florida and beyond right here.

See what $25 will get you after the jump:

The property pictured above, located at 1416 Ada Street (also in Lansing),  was actually occupied at the time of the sale. The tenants have six months to vacate the property or rent from the new $25 owner.

Unreal.

To check out foreclosed homes for sale in Michigan and/or in your neck of the woods click here.

Buyer beware!

It’s perhaps the most important nugget of advice as it relates to investing in and/or buying foreclosed homes.

What you see isn’t always what you get, especially when distressed properties hit the auction block. Whether it’s a structural problem that costs thousands to fix or an encumbrance on the title that is virtually not fixable, foreclosures are inherently risky investments.

The Strand family, which purchased a deed at a foreclosure auction earlier this year for $96,000 cash, found out the hard way.

From the San Francisco Chronicle:

“Apparently, unbeknownst to us, Wachovia sold us a worthless second mortgage that was part of a piggyback loan made to the” previous owners. Both loans were originated, signed and recorded on the same date. Rather than foreclose on both loans at the same time, Wachovia chose to foreclose, market and sell the worthless junior lien, purporting it to be the real property, which is what we purchased.”

That’s right, $96,000 on essentially, a worthless note. The first mortgage, which was worth about $298,000, was later reclaimed by the lender after it failed to sell at a separate auction.

The good news is that the Strand family and the lender “negotiated a confidential settlement.”

Nonetheless, the lesson is clear: Do your homework! Sure, there are loads of great deals hitting the auction block every day, but there are also a fair share of land mines that have the power to blow up your bank account.

To be safe rather than sorry, the report offers up these helpful tips for bargain hunters:

• Engage a real estate attorney and/or a professional investor.
• Hire a title company to make sure there are no liens.
• Observe some auctions before bidding.
• Research the property history at the county recorder’s office or subscription websites like RealtyTrac and ForeclosureRadar.
• Be prepared to pay cash.
• Understand that the property has no guarantees on title or condition.
• Consider buying a bank-owned property instead.

For more detailed information about buying foreclosed homes at auction we recommend that you also check out “Outsmart Experts at Foreclosure Auctions and Win!”

Good luck!

Boca Raton, Fla. — June 15, 2010 — Foreclosure.com today announced that it has added another dynamic training program to the agent-focused certification opportunities that it offers through The Agent University.

The REDC Certified Auction Agent program will help agents — and their buyers — capitalize on the many foreclosed home auctions held by Real Estate Disposition, LLC (REDC) each year. In fact, REDC — one of the most reputable and successful real estate auction companies in the nation — is on pace to hold more than 500 events throughout the United States in 2010 alone.

“Certified REDC auction agents will promote confidence among their buyers that they understand the auction process and know how to get the best deals possible,” says Foreclosure.com Director of Education, Linda Yates. “It’s a strategic move that agents and brokers need to add to their businesses — the potential is off the charts.”

In addition to being the leading real estate auction marketing firm in the country, the REDC group of companies also provides real estate brokerage services, asset management and short sale facilitation. The company has established a dominant position in its industry by selling more than $6 billion in real estate assets at auction in 2008 and 2009 alone.

“This certification is yet another tool that REDC provides agents to be successful in the ever-changing distressed real estate market,” says Dave Lee, REDC Senior Vice President of Client Services. “It’s a fantastic way for them to catch and ride this default tidal wave for as long as it lasts.”

Interested agents need to successfully complete a comprehensive, one-time online educational course to earn their REDC certifications.

For more information regarding the REDC Certified Auction Agent program please visit http://redc.theagentuniversity.com or call us at (866) 382-4445.

Whether it’s online or at a live ballroom mega-auction, REDC Certified Auction Agents will understand how to place successful bids for the benefit of their buyers and earn commissions in the process.

Other REDC Certified Auction Agent benefits include:

• REDC Agent Certificate
• Special insight on how auctions work
• Logos for marketing purposes
• Customizable online property brochure
• Agent/broker Web page
  • Networking with other agents
  • Highlight the agents who are certified on the Web
• Become an expert — YOU want to be a certified agent
• Distinguishable auction lapels
• Meet/greet auctioneer and assistants
• Reserved auction-day seating

For more information regarding the REDC Certified Auction Agent program please visit http://redc.theagentuniversity.com or call us at (866) 382-4445.

Real estate auction sales have climbed 10 percent year-over-year since 2000, according to CNNMoney.com report, and the numbers continue to rise (14 percent in the first quarter of 2010) as the housing inventory keeps piling up.

It’s a billion dollar business … $17 billion in 2007 alone, to be precise. And that figure, too, will likely rise soon if it hasn’t already.

That’s because auctioneers are holding two or more auctions per day throughout the nation to keep pace. REDC, which is among the biggest companies in the real estate auction space, is on pace to exceed 520 such sales in 2010 — a 50 percent increase compared to just last year.

What’s the reason for the staggering across-the-board increases?

Les Christie explains:

“The biggest auction advantage is speed, of course: From first marketing to closing can be less than 10 weeks … There is such a huge volume of REOs on the market — 92,000 homes were seized in April alone — that banks are anxious to turn the properties over quickly. Rather than waiting for the local housing market, they turn to auctioneers.”

To check out the homes for sale at upcoming foreclosure auctions near you click here (REDC) and here (RealtyBid).

So says Colorado Springs, Colo., real estate agent Shawn Jardine in a recent article from the Christian Science Monitor:

“It’s a feeding frenzy right now. On one property listed for $65,000, I had 15 offers. The best offer won at $20,000 over asking price.”

Wholesalers, which are basically investors with lots of money who can buy in bulk, are “snapping up” a healthy chunk of the best distressed property deals currently available on the market.

It’s common these days for wholesalers to swoop in and make all-cash offers, making it difficult for first-time homebuyers and other “small-time” investors to land their deals.

With the nationwide housing market riddled with bargains, and a volatile stock market, wholesalers are literally banking on the notion that the market will eventually rebound. Perhaps not to pre-collapse levels anytime soon, but nonetheless, it’s bound to happen.

When and where is still a huge question mark. In the meantime, opportunistic wholesalers have the ability to buy low now, renovate their homes (if necessary) and then hang onto them for however long it takes to rent or re-sell at later time for huge profits.

To beat wholeslaers, investors and other buyers to the punch, we always recommend that you consider our FREE email alerts. We send you the hottest deals in your area the moment they hit the market.

Timing is everything … now more than ever!

Another city, more happy homeowners.

REDC — one of the nation’s most reputable and successful real estate auction companies — unloaded more than three dozen homes this weekend at a foreclosure auction in Golden, Colo., according to CBS4Denver.com.

All in a day’s work for the auctioneer, which is among the best at getting distressed homes off the market and occupied at a remarkable rate, selling more than 13,000 properties so far this year worth about $675 million.

Impressive to say the least … and we’re not even at the half-way point of 2010.

It’s an efficient process that gets families into homes, eliminates vacancies and takes a financial burden off banks.

So it’s not surprising that all parties — and communities — embrace REDC wherever and whenever it rolls into a new town, says company spokesperson Brad Fields:

“It’s taking a process that is traditionally a little slower and being able to very quickly get buyers into the property and revitalize those neighborhoods and create homes. It’s a little bit different of a process, but one that buyers shouldn’t be afraid of.”

REDC allows buyers and/or their representatives to place bids in-person or online. The process is safe, easy, and compliant with all legal regulations.

To check out the homes for sale at the upcoming foreclosure auctions, as well as to see when REDC will be coming to a city near you, click here.