Property Q&A in Hemet>Question Details

Louis, Home Buyer in Calif City, CA

Property says "bank owned". Does that mean there could be liens/back taxes that would be my responsiblity?

Asked by Louis, Calif City, CA Tue Dec 23, 2008

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This question is about this property: http://www.trulia.com/property/1071395012-2455-W-Acacia-Ave-…

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Louis,

If there are liens/back taxes etc. associated with a bank owned property, for the property to be transferred to a new owner with a clear title these debts need to be resolved by the bank.
0 votes Thank Flag Link Wed Dec 24, 2008
Hi there Louis

Typically they are free and clear of liens and back taxes. A Title report will show this and make sure you have title insurance.

For cond's make sure to request HOA Association fees and dues be finalized and paid

Best of luck with it
Kind Regards
Michael Barron
First Team Real Estate
0 votes Thank Flag Link Wed Dec 24, 2008
Louis:

Bank owned properties are sold "free and clear of liens". This means all outstanding loans and taxes will / should be paid off before title is transferred. This is what title insurance will cover you for.

One caution, since this is a condo. Make sure that your offer to purchase the property clearly states that the bank will pay all delinquent Home Owners Association dues and will prorate dues through close of escrow. Also, that the bank will pay all HOA transfer fees and costs associated with HOA documentation that you are to receive through escrow. I have heard of a couple of instances where the banks have not paid the Association Dues as they had not yet filed a lien against the property. Make sure you require that they do this through the terms of your contract. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Wed Dec 24, 2008
From the info I have received All Leins must be satisfied in order to transfer Title in Calif so you should be fine as long as you demand Title and Escrow with any offer. Let me know if you need any help with regards to this property as Hemet is my specialty. Have a wonderful evening and a Beautiful Holiday Season.
0 votes Thank Flag Link Tue Dec 23, 2008
Usually once the bank takes the property back at foreclosure auction, all eins and back taxes are paid at auction, the property is then listed with a local realtor. Only if you purchase at the foreclosure auction is the buyer responsible for paying everything on their own. the listing agent for this property is phil at 951-640-1913 . good luck with your search.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Tue Dec 23, 2008
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