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Location, Home Buyer in Chicago, IL

if i buy a foreclosed home, am i responsible for pay for the liens and violations before purchasing it??

Asked by Location, Chicago, IL Fri Oct 16, 2009

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This is an old question from 2009.
If a foreclosure has an association there may be 6 months of dues, attorney fees and late fees of an unknown amount per Illinois Public act 1049..
0 votes Thank Flag Link Mon Jul 29, 2013
Dear Homebuyer,
Title Search is a must.

If you are buying a foreclosed home, you will not be responsible to pay for the liens and would receive clear title at closing.

In reference to violations, building issues. If there are Code Violations and they are on record, you will not be able to close until those violations were corrected. Clear title will not be issued.
0 votes Thank Flag Link Sun Jul 28, 2013
Good question for your agent and attorney. They should help assist you in making sure any offers you're making protect your interests and prevent surprises down the road.

Besides liens and violations, I'm running into instances where the title companies are charging the state/county and if applicable, city transfer tax stamps to the buyer, regardless of who is supposed to pay them. REO sales contracts often contain little time bombs that say they are "exempt" from paying tax stamps...and if they are charged, they belong to the buyer. In some cases, this can add some considerable heft to your closing costs, so beware. And if you're out there in the 'burbs, also know that a lot of towns are piling on fees and inspections at time of sale.

Info regarding transfer tax stamps: state, county and municipality and links to info for each; great site provided by Chicago Title.

http://cmetro.ctic.com/documents/Transfer%20Tax%20List%20rev…
0 votes Thank Flag Link Wed Oct 21, 2009
Answers below are on target, generally the seller will provide clear title which means they take care of the liens. But you want to be sure your contract covers that issue. I wonder why you are asking this question on Trulia? are you just considering a purchase, not yet actively looking? Getting ready to jump into the market? If so, I strongly recommend to find a buyer's agent to work with you throughout the process. The agent can recommend other professionals as well - attorney, inspector, lender, etc. PS since sellers typically pay the realtor commissions, it doesn't cost you extra to work with a buyer's agent - someone why has your interests as their highest priority.
Let me know if you would like to talk further, I'd be happy to sit down and talk with you about your plans/goals and how I could help you achieve them. synthianoble@gmail.com 312-399-6729 remax 2000
0 votes Thank Flag Link Wed Oct 21, 2009
Dear Homebuyer,
If you are buying a foreclosed home, you would not be responsible to pay for the liens and would receive clear title at closing.

With respect to violations. If these are City of Chicago Code Violations and they are on record, you will not be able to close until those violations were removed as title would not be issued. That being said, the violations could be handled different ways. If they were health and safety issues, my experience is that the bank will remedy or issue a repair credit that would be held in escrow by the Title Company; or if the violations were minor, I have seen it where the City of Chicago has removed these minor infractions because it was specifically because the property was vacant and the City wanted to gain access. Allbeit, the bank may not pay based upon your net selling price and hence, because of said selling price, you may be responsible for remedying the violations prior to close. But, I have yet to see a bank let the purchase have access into the property to remedy a violation without a $1M policy to protect the Banks' interest and something in writing by all parties concerned. That happened only on one file. So, the answer varies based upon the circumstances of the violation(s).

I, myself, always check with the City of Chicago or the municipality to see if there are any existing violations on record prior to writing the offer. Good practice to have.

Barb Van Stensel
Keller Williams LIncoln Square
2156 W. Montrose
Chicago, IL 60625
(773) 564-4268
0 votes Thank Flag Link Sat Oct 17, 2009
Maybe. If you are working with an agent have he/she research what is included or not included in the price. Also check with your attorney to determine hidden costs and fees. You may be responsible for local municipal code violation fees etc. "Buyer beware" is my motto when purchasing a foreclosure. Enjoy the search for your new property. If I can help you feel free to contact me at 312-659-5431
Web Reference: http://www.sharoncurcio.com
0 votes Thank Flag Link Fri Oct 16, 2009
Usually not with respect to liens as you should be getting 'clear title', but read the addendums to the contract and speak with your attorney. Often building code violations will exist and those will be your responsibility to deal with after you take posession. The price you pay should reflect these issues. Let your attorney know what you want particularly if you do not have an agent! However some Auctions require you to take posession virtually 'blind'. Watch out.

philip
0 votes Thank Flag Link Fri Oct 16, 2009
Dear Chicago Home Buyer
Depends on how you are buying the home. If you are buying from the lender, a REO property, then whatever is negotiated and accepted for a purchased price is the only amount you will pay. Many times with a foreclosed property,, appliances have been removed, light fixtures missing, toilets and sinks missing, make sure you understand what comes with the property and get inspections.
Good Luck to you
denise laugesen
650-465-5742

Cashin Company
#1 Producing Agent
Denise Laugesen
Email deniselaugesen@comcast.net
Direct Line 650-403-6225
DRE 01011089
0 votes Thank Flag Link Fri Oct 16, 2009
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