Home Buying in Denver>Question Details

Aubrey Manni…, Real Estate Pro in Fort Collins, CO

When buying an REO, does the bank always take care of any liens? Or do they ever make the buyers pay for

Asked by Aubrey Manning, Fort Collins, CO Mon May 19, 2008

this at last minute?

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All liens should have been cleared during the foreclosure process, however, this is NOT always the case. I've seen clouds on title created by the foreclosure process and liens not being cleared appropriately. Ensure the title committment policy gets read by an attorney to ensure all liens were cleared correctly. The clearing of liens legally is handled by humans and humans make mistakes. I've seen it happen. Also, might check to see if there are any additional title endorsements that might protect against this.
Good luck,
Susan Walker
0 votes Thank Flag Link Mon May 19, 2008
Aubrey,

When a property is REO it is fully owned by the bank and all previous liens have been removed through the foreclosure process. The only lien that would be on a lender owned property would be the one you obtained through your new loan.

If you want to search for REOs, or any other properties, in the Denver area give me a call. I'll set you up in my free, no obligation, MLS notification system.

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0 votes Thank Flag Link Mon May 19, 2008
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