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Landlord, Real Estate Pro in Piscataway, NJ

Complicated Title with existing Liens

Asked by Landlord, Piscataway, NJ Thu Nov 14, 2013

I wanted to get your opinion on my current situation. I found a nice foreclosure property which has a complicatetd/clouded title due to existing municipal liens. I am getting a good deal if there were no liens, but the property may not be worth anything if the existing municipal lien becomes enforcable. I need your advise on your advise on if it is really worth the headache to go through the closing or should i quit

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You need legal assistance, not advice from unknown posters on a public forum. This is way too complex to be answered here. Or you could just go to Atlantic City and put your money on black.
1 vote Thank Flag Link Thu Nov 14, 2013
Thanks everyone for the advise
Flag Thu Nov 14, 2013
Hi,

You really need to find out Types of liens? Also, the dollar amount of all combined liens and financially If it makes sense to go ahead, you should move ahead or stop.

Vishal.
0 votes Thank Flag Link Mon Nov 18, 2013
Stopped back by to see comments and want to clarify something about the property? Are you considering a home that has already been foreclosed on and the bank now owns the property OR are you referring to a property that is in foreclosure but the process isn't complete (bank does not own the property yet) and is going to auction. Here in Florida buying at the auction comes with great risks - buying a home the bank already owns (referred to as a REO which stands for Real Estate Owned) is a total different thing. Our contracts cover liens and as long as the purchase agreement is written correctly regarding the liens the bank (on a REO) will pay them and convey clear title to the buyer. This is not legal advice so don't take it as such.
0 votes Thank Flag Link Fri Nov 15, 2013
municipal liens get paid 1st before any mortgage liens. The typical practice is once these liens are discovered is to go back to the bank and renegotiate.

It is also the due diligence of the attorney and Realtor to get this title search done up front and not wait til the last minute like in normal deals.
0 votes Thank Flag Link Fri Nov 15, 2013
That's part of the risk you take when buying a foreclosure. It really important to have a great attorney that is experience in dealing with foreclosures and short sales. Lots of deals fall part because of the lack of knowledge on the buying side.
0 votes Thank Flag Link Thu Nov 14, 2013
Well, from personal sales experience…. what I have seen is that the buyer will become responsible for the liens. I have not yet been involved with a single transaction where the bank has paid the liens for the buyer or they have just washed away. But who knows? Seems to be part of the nature of the beast. You are not going to get an answer or advise except from your attorney and the selling bank.

And of course, as all the Realtor's have repeatedly blathered, you need speak to your attorney and find out what is what.

Good Luck

Let us know what the attorney say's! I hope you can get it resolved!
0 votes Thank Flag Link Thu Nov 14, 2013
Further - speaking to some townpeoplw.. municipal liens should be paid by the bank, as I hear it.
Flag Mon Nov 18, 2013
Thinking about it further and I realized that the buyers I had on these transactions had paid for the liens... and I have not seen a bank pay any liens. I cannot say that they buyer "is" or will be responsible....
Flag Thu Nov 14, 2013
This is definitely an issue you need to discuss with a real estate attorney. Real estate agents aren't able to give you legal advice which is what you really need to avoid getting burned.
0 votes Thank Flag Link Thu Nov 14, 2013
Get legal advice - that is the big risk when buying a foreclosure and short sale property. There are very good attorneys in the area that can help you.
0 votes Thank Flag Link Thu Nov 14, 2013
I agree with what Joseph said. Get legal assistance with this one. It's not worth the risk.

-Jane
0 votes Thank Flag Link Thu Nov 14, 2013
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