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
First Team Real Estate
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.
Real Estate Consultant
RE/MAX Palos Verdes Realty