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Is the title of a trustee/foreclosure sale real property clean?

I am interested in biding a real property in trustee/foreclosure sale auction. But there is some terms on the "Notice of Trustees' sale": "The sale will be make without warranty, express or implied, regarding title, possession or encumtrances on xmonth xday xyear (bankcruptcy filing date.)" I wonder what is that mean? Does that mean the title is still carrying on some liens?

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Attorney answers (3)

Reputation Level 20
It means you are taking a risk that there are encumbrances, liens, easements, etc. still on the property, or other problems with the chain of title. The only way to know for sure is to pay for a title report.

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Reputation Level 20
I agree with Mr. Fink. You also need to purchase title insurance at the closing so that the title you think you are getting is insured.

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Reputation Level 19
I agree with both previous answers, and I would add that title insurance may not be issued in the sale , however you can pay for a report and see what comes up. You must balance the amount you save with the leins and other encumberances that will survive. Do the numbers, and see if they will pay even if you by it at auction. There is always an amount of risk in every transaction.

God Luck

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