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A property selling for $40,000 at auction might carry $25,000 in unpaid taxes, $8,000 in municipal water liens, and an IRS lien — turning what looked like a deal into a financial disaster. A title search is your primary defense.
Why This Is Different at a Sheriff Sale
Unlike buying on the open market — where the seller provides title insurance and you have time for full attorney review — at a sheriff sale you often make decisions with 30 minutes of prep. A fast, targeted title search is a core investor skill, not optional.
What a Title Search Tells You
- Who currently owns the property — and was foreclosure initiated by the correct party?
- What mortgages and liens are recorded against the property?
- Which liens will survive and become your responsibility?
- Are there judgments against the current owner that could cloud title?
- Is there a lis pendens (pending lawsuit) beyond the current foreclosure?
- Are property taxes current — if not, exactly how much is owed?
- Are there easements, deed restrictions, or other encumbrances?
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The 6-Step Process
Get the Property Identifier
Before you can search anything, you need two key identifiers:
| Identifier | Where to Find It | Used For |
|---|---|---|
| Parcel ID (APN) | County assessment website, SheriffIQ listing | Tax records, GIS maps, assessments |
| Case Number | Sheriff sale listing, court docket | Court records, foreclosure details |
| Owner Name | Deed records (county recorder) | Judgment lien search, IRS lien search |
SheriffIQ Saves You Step 1
SheriffIQ provides the case number and parcel ID for every listing — so you can start research immediately.
Search the County Recorder
The county recorder maintains the official record of all documents affecting real property. Look for:
- Deed history — trace ownership back 20+ years
- All recorded mortgages
- Mortgage satisfactions and releases
- Lis pendens — pending lawsuits
- Mechanic's liens
- HOA liens
| Method | Cost | Speed | Best For |
|---|---|---|---|
| County website | Free | Immediate | Quick checks |
| In-person at recorder | Free/nominal | Same day | Older documents |
| DataTree, etc. | Subscription | Immediate | High-volume investors |
| Title company | $150–500 | 1–5 days | High-value properties |
Check Property Tax Records
Unpaid property taxes are among the most common and most dangerous liens. In virtually every state, property tax liens have super-priority status — senior to all other liens, and they survive the sale.
Look for: current year taxes (paid?), prior year delinquencies (how many years, total amount), and tax sale certificates (has the county already sold the lien?).
Tax Calculation Warning
If a property has $8,000 in unpaid taxes, that adds directly to your acquisition cost. A $35,000 auction price + $8,000 tax arrears = effectively a $43,000 purchase.
Search for Municipal Liens
Municipal liens are not always recorded at the county recorder, which means they won't appear in a standard title search.
| Lien Type | Who to Contact | Priority |
|---|---|---|
| Water and sewer | Municipal water authority | Super-priority in many states |
| Code violations | Code enforcement office | Often survives |
| Demolition/abatement | Building/code office | Often super-priority |
| Trash/garbage | Municipal billing | Varies |
| Street assessments | Public works dept | Often survives |
Call the municipality directly. This step is non-negotiable in NJ and PA, where water/sewer authorities can accumulate tens of thousands on a single property.
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Search for IRS Federal Tax Liens
Federal tax liens attach to all property the taxpayer owns in the county — and they survive sheriff sales with a powerful complication.
The IRS 120-Day Redemption Right
Under 26 U.S.C. Section 7425, the IRS has 120 days after the sale to redeem — paying you exactly what you paid plus interest and taking the property. The IRS exercises this selectively on high-equity properties.
Search the county recorder by owner's full legal name, and use the IRS lien portal at apps.irs.gov.
Search Court Records for Judgments
Search the county court's online docket by the owner's name for civil judgments and — critically — active bankruptcy filings.
Bankruptcy Warning
If the property owner filed bankruptcy before the sheriff sale, the sale may be void — even if you've already paid. Always check PACER (pacer.gov) for active or recent filings.
DIY vs. Hiring a Title Company
| Situation | Recommendation |
|---|---|
| High-value property ($200k+) | Hire a title company — fee is negligible relative to the deal |
| Complex lien environment | Hire a title company or real estate attorney |
| Low-value property, simple title | DIY is reasonable — focus on taxes and municipal liens |
| Need title insurance to resell/refinance | You'll need a title company anyway — start there |
| High-volume investor (10+/year) | Build a relationship with a foreclosure-specialized title co. |
Title searches typically cost $150–400. For any property with meaningful equity, this is money well spent.
Pre-Auction Checklist
- County recorder — deed history, mortgages, lis pendens, mechanic's liens
- Property tax status — current year and all prior delinquencies
- Municipal liens — water/sewer, code violations, demolition liens
- Federal tax liens — IRS liens under owner's name
- Court judgments — civil judgments against the owner
- Bankruptcy check — PACER search for active or recent filings
- Calculate total lien exposure — add all surviving liens to your bid
- Calculate MAO — ARV minus repairs minus liens minus profit minus closing costs
- Verify sale status — confirm auction is still scheduled
SheriffIQ Flags Key Lien Indicators
Skip step 1 — we provide parcel IDs, case numbers, and lien flags for every listed property.
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This article is for informational purposes only and does not constitute legal or financial advice. Always consult a licensed real estate attorney before participating in a sheriff sale auction.