re: Tax Lien Auctions have a great return but are they morally ethical?

Bumping an older thread, but I'm currently looking at a tax lien property that will be going to auction next month. I had a question about this comment:

quote:

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But if owner never redeemed taxes, and tax sale purchaser acquires full ownership, you cant issue title insurance. The problem is that you eliminate almost all financed buyers from your marketplace, if you were trying to sell that property. Cash buyers probably wouldn't care, but anyone that has to borrow money probably wouldn't get their loan approved.

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So I'm looking into a piece of land, no home. And the intent is to build on it and then re-sell. But this statement above concerns me if true, as I hadn't heard of this before. Will it be difficult for me to re-sell the newly built home because of the lack of the ability of the prospective buyer to get title insurance and ultimate loan?