There are recorded liens and unrecorded liens.
There is no way for the title company to discover the unrecorded liens.
For the recorded liens, the title company still cannot gurantee to find them all.
This is why you need title insurance.
You need basic title insurance to cover the recorded liens. But usually this is not enough for short sales and foreclosed houses. I strongly recommend you to buy premium/advanced/extensive title insurance to cover everything.
Even though, the title company is responsible for the mistake of not discovering the recorded liens.
There is no way for the title company to discover the unrecorded liens.
For the recorded liens, the title company still cannot gurantee to find them all.
This is why you need title insurance.
You need basic title insurance to cover the recorded liens. But usually this is not enough for short sales and foreclosed houses. I strongly recommend you to buy premium/advanced/extensive title insurance to cover everything.
Even though, the title company is responsible for the mistake of not discovering the recorded liens.