Top Ten Things Investors Should Know Before Buying a Property at a Foreclosure Auction
1. Which lien holder is foreclosing on the property? It may be the holder of the 1st position mortgage, HOA lien, tax lien, municipal lien, 2nd lien, mechanic’s lien or judgment lien.
2. Delinquent real estate taxes must be paid off by the winning bidder.
3. Any outstanding municipal and city liens will attach to the property after foreclosure.
4. Check the redemption timeline which will identify if and for how long the foreclosed owner has to redeem the property after the auction.
5. What judgments and liens will get wiped off the property and can only collect against the current owner?
6. Do water and sewer balances from the prior owner attach to the property?
7. Are there outstanding permit violations and code enforcement liens?
8. Did the owner file for bankruptcy right before the auction?
9. Deferred taxes must be paid off by the new owner.
10. The property’s condition will be the responsibility of the buyer. Check for unsafe living conditions, unrecorded municipal liens, demolition orders, etc.
All of these items and more are answered through a ProTitleUSA Title Search
with an Unrecorded Lien Search.