I wouldn't do it. A Quit Claim is worth the paper it's printed on. It only means that the "Seller" is giving up their rights, which could mean they have all rights, some rights, or no rights. I could literally give you a Quit Claim deed for the property you just won.

That said, some folks do it. If you plan to put a lot of money into it and hold it as a keeper, I would bite the bullet and initiate a Quiet Title action. Once title is "Quieted" you can get title insurance. Otherwise, if you put $10K into making this place nice, someone could dispute your rights of ownership, say that FNMA didn't do their legal due diligence, and sue you. If they win the property case, then you'd lose it plus your upgrades. But either way, you're out the legal cost of defending yourself, and these cases are NOT cheap! With title insurance, they pay the cost of defense and reimburse you for purchase costs.

I saw this recently on a property being auctioned with Hudson & Marshall. It was in the disclosures the type of deed that was available as well as the redemption period wasn't up until the end of March. The property was vacant but was just foreclosed on.

The Quit Claim Deed basically says that the Bank knows their interest in the property and does not guarantee 100% of the interest with the property. HOWEVER is the Bank 1st place in the line of liens, judgment and mortgages OR is it a 2nd mortgage or down the line.

Some banks will foreclose on all other banks or lien holders however some banks may not and only foreclose on their own interest.

You may want to have a title search done on the property just for your own purpose. Then the title will show if there are other liens, judgements or mortgages. Plus other title issues.

Did they disclose the Quit Claim Deed when you started biding on the property or was it disclosed after the closing of the final bidding? IF no place in the auction site they disclosed the quit claim transfer. Then I would tell them that is not satisfactory due to the fact it was not disclosed. IF it was disclosed then you got yourself the new owner of the property. IF this is the case then call a title company to do a title search for you. Then you will know where you stand and like Sid of MO mentioned you may have to do Quiet Title Action

Remember during the high rate of foreclosure years 2008 was the peak. Then 2009 to now there are banks that are still unloading properties. During that period did the banks record assignments from one bank to the other bank; is there a good chain of title? PLUS homeowners did quitclaim deeds from spouse to spouse, divorces, etc. LLC owned properties did quit claim from one LLC to another.

Can a cloud be on the title sure it can. Call a title company to do a title search on the property for your own purpose and piece of mind. You may want to offer 50% less since they will not give you a better deed and do not guarantee good title.

Ask the title company how far back do they check the chain of title. Some title companies go back 60 years. Other title company may go back more than 60 years.

Sometimes there is a lien out there that wasn't recorded and available for viewing by the banks, courts and title company's. You may think the bank or 100's of owners (these days no one bank holds title, it is through a named clearing house who has the authority to act for the group).

You find out later that the rats come out of the walls and a contractor, the IRS, State Tax Court and others are owed money and put a Junior lien on the property and they tittle changed before the auction and the owner is rally now in second position.

I have bought a couple of properties for which I received only a Quit Claim Deed. I have never sold any such properties.

When I received an offer to purchase (the property was not being offered for sale, but a very interested prospect made an unsolicited offer), the title company did not show me as the owner, but merely showed me as a cloud on title!

If I ever decide to sell, I will probably need to file a quiet title action in order to convince the title companies that I own it -- that would be needed for any buyer to get a loan.

In the meantime, I pay the taxes and the Landlord's Insurance, and I collect the rent. I do not care (until I want to sell) what the title company says.

TA of CA, How does a tax foreclosure or a HOA foreclosure extinguish all other liens? UNLESS according to CA laws it does??? However a tax sale does NOT extinguish all other liens. However IF the county did a FREE and CLEAR sale then it may clear all liens. As far as an HOA foreclosure it does not extinguish all liens: not a mortgage, not other liens UNLESS the HOA listed the other liens holders on the foreclosure then it may extinguish the liens. In most cases all the HOA foreclosure is doing is recovering the monies they are owed. This being said each state law is different so in CA tax foreclosures and HOA foreclosures may remove other liens.