In other words, if you put a property inspection in the agreement of sale as a contingency (something you should definitely do), no matter what problems are found wth the property the bank is stating they will not do anything about it. It is being sold "As Is". Your option, since you did a contingency, would be to walk away from the property or accept it "As Is".
Having said that, I have seen some cases in which the bank will do a repair since it may affect the buyer's ability to get a mortgage.
When you buy a property, you purchase title insurance. Title Insurance guarantees you receive the property free and clean of any liens or encumberances. Back taxes fall into this category. The bank must pay these or make it part of the negotiations (that you will pay them) when you do the agreement of sale.
Long & Foster Real Estate, Inc
Lehigh Valley Office, PA
Most of tax liens on the REO properties are cleared by the bank that owned REO. You can also search for back tax, lien and judgment on the free real estate information site such as http://www.searchq.com
Get an attorney and a Realtor involved to reduce your stress levels, both of them will be a part of your â€˜teamâ€™, and should be able to get more in depth information for you regarding the property in question.
Dp2, on properties in NYC, you can find a lot of things out about a property through the NYC building department website. All you need is an address.
One of my business partners and I were considering buying a county-owned property last month in OH--until we learned that the county intended to collect nearly $6K (roughly 2-3 years worth) in back taxes. We passed on that property, because it wasn't worth that much to us.
Earlier this year, another business partner and I have collaborated on a couple commercial deals in NYC (Bronx borough) and DFW (Dallas county) that were also conveyed with quitclaim deed and similarly encumbered. We rejected them, because we actually wanted the properties to convey with full warranty deeds (due to some of the title clutter that we unearthed during our due diligence), and both sellers balked at our request. The seller in NYC was trying to hide a lot of stuff, and I don't remember the exact reason why the DFW seller balked.
Anyway, Robbin is correct: 1) contact the county assessor for that info, or 2) get that info from your title work.
You asked a couple of questions:
Q: How do I find out if there is back taxes owed on a reo property?
A: Once you get a foreclosed home into escrow, the title company will provide you with a preliminary title report that will clearly spell out any existing liens against the property.
Q: If a reo "AS IS" property is sold by the bank is the title clear?
A: Yes. As stated below, â€œAS-ISâ€ relates to property condition, not the title. You will be delivered the property free and clear: no lender will even consider lending on a property that has existing liens.
The only way you may end up paying for delinquent taxes, HOA, etc. is if you are an investor and you buy the property wholesale on the courthouse steps.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
When the property closes you will get clear title to the property with no liens, taxes, etc. due on the property.
Most reo properties are offered for sale in As-is condition which means you are entitled to an inspection but that any repairs may be on your dime.
Best of luck to you!