Home Buying in Chicago>Question Details

Ms Newson, Home Buyer in Chicago, IL

When you buy foreclosures and REO's are you responsible for any city fines and violations and/or liens that are attached to the property?

Asked by Ms Newson, Chicago, IL Thu May 22, 2014

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6
Foreclosure wipes out most of the liens except superior liens like utilities, code violations, property taxes, etc. If you have questions about any specific liens or specific property, please feel free to reach me.
0 votes Thank Flag Link Sun Jun 22, 2014
Usually, yes. However, you may be able to get out of paying some of the fines. Ask your realtor to research the property well before you make an offer. Even if you make an offer, you will have the option to backout if you discover that there are too many fines to make it a worthwhile investment. Sincerely, John Meyers (Meyers Realty)
0 votes Thank Flag Link Fri Jun 20, 2014
You could be. You should have your agent and attorney look into it. Its relative to each property.
0 votes Thank Flag Link Thu May 29, 2014
You could be. During attorney review, your attorney will be able to find out if there is any on the property.
0 votes Thank Flag Link Sat May 24, 2014
I would certainly recommend trying to discover any city fines or violations (check with city and title company). Some REO companies will clear them, others will require buyer to take responsibility for them. And it also varies by city, as certain cities will allow to close on the property when the buyer agrees to take on permits etc and correct a problem within specified time, while others won't issue ok to close. Generally any liens along with city fines are paid at or before closing (unless you acquire a property through sheriff's sale), but it's not true in each case.
0 votes Thank Flag Link Sat May 24, 2014
It would depend on the lender and their specific rules. Your agent should be able to provide you with specifics from the seller prior to your making an offer.
0 votes Thank Flag Link Thu May 22, 2014
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