Foreclosure in 33432>Question Details

mimi598, Home Buyer in Royal Palm Beach, FL

If I purchase a tax deed auction property, do I still owe the bank outstanding mortgage?

Asked by mimi598, Royal Palm Beach, FL Mon Jun 24, 2013

Help the community by answering this question:

Answers

7
Mimi,

Please do not make the same mistakes as so many others as if you do not know how the foreclosure auction world works you could be throwing good money down the drain. There are any number of parties who could foreclose upon a property and if you outbid a junior lien you will find that you will have other liens that need to be dealt with. I field a lot of calls on this subject and they usually are from uneducated participants in auctions who have outbid a homeowners association or other junior lien.

A few weeks ago I had one such call from a party who got into a bidding war with another uneducated bidder and ended up paying $60,000 on a foreclosure by a homeowners association. About $9,000 of their money went to the Homeowners Association and the balance to the bank. They in turn got very little and about all they can do is rent the property until the bank forecloses and hope to recoup some of their money. They could also negotiate with the bank but will typically find this is a fruitless effort.

Please, please, please do not participate in these auction unless you know how the game is played. Best of luck and if I can offer anything additional please let me know.



Always at Your Service,


Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
tom@tompriester.com
2 votes Thank Flag Link Mon Jun 24, 2013
How do you know when a property goes into tax lien auction
0 votes Thank Flag Link Sat May 31, 2014
Hi mimi 598
please contact me, I answer your question.
thanks
0 votes Thank Flag Link Sun Jul 7, 2013
Hi, how do I contact you?
Flag Sun Jul 7, 2013
Michele,

If you are looking at property tax auctions all you are getting is the interest rate you bid until somebody satisfies the property tax bill. If you are paying cash you can participate in foreclosure auctions but again you have to fully understand how the game is played. You will need a title company who can immediately research any liens on any property, be able to make split second decisions and understand you are buying it without the right to inspect the property. There are risks but also rewards.

Many play this game full time and they will be your competition.

Fins up,

Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
tom@tompriester.com
0 votes Thank Flag Link Tue Jun 25, 2013
Shure you do! If you " Purchase " a property at a Tax Sale. It is made
Quite clear: You are only getting title subject to existing liens! Further,
any reference you consult will point out a Tax Deed is not even
"Marketable Title" ! Forclosure through the Court process
is apart from Tax Liens.
Good advice: Any kind of Auction of Real Assets is High Risk
even for the most experieced investors- Beware!
How it works is just like a risky stock! Your return isn't safe
pricipally because it's unclear" Exactly how it will work"
Best Bet : stick to Solid calculated investments there are
plenty of opportunites here! Best in All you do-Be Safe!

Bob Brubaker Highlight Realty Palm Beach County Fl. 561-876-6649
Web Reference: http://pbc-realcam.com
0 votes Thank Flag Link Mon Jun 24, 2013
Thank you! I appreciate your help and good advice - I'll have to think a bit about all of this, thanks again! :)
Flag Sun Jul 7, 2013
Thank you Tom and Dean! I do know I never want to bid on an auction where the homeowner's association is the one who filed....but I wasn't sure how it worked when the county foreclosed on the property and if the mortgage would still be owed. I do see a lot of activity on these properties so I'm guessing there has to be some gain to it....just not sure exactly how it all works.

Tom, you mentioned the bank can still foreclose after a tax deed sale but I thought the "winner" received title to the property. That's not true?

Thank you again for your help and insight - my husband and I are very interested in purchasing at auction but do need some help and guidance, is this something either of you do?
Michele
0 votes Thank Flag Link Mon Jun 24, 2013
mimi,
you will never understand the horrible damage and ruin this practice is to families, single parents, children.
this is mercenary type of greed, at best.
Flag Wed Jan 15, 2014
Mimi,
You could owe an existing mortgage AND a variety of other charges. You REALLY need to do your due diligence here to know what you could be in for.

Dean Emly
Keller Williams Realty
Boynton Beach & Boca Raton locations
demly49@yahoo.com
561-901-7808 direct
0 votes Thank Flag Link Mon Jun 24, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer