Home Buying in 15347>Question Details

Gabe Hollenb…, Home Buyer in 15347

Bank own homes REO buying tip?

Asked by Gabe Hollenbach, 15347 Tue Feb 24, 2009

I'm thinking about buying a bank owned home REO as a first home; if there is a lien against the home would I be advised before the purchase with the amount and how to remove since I just bought it ,or find out in a surprise having to pay additional fees?

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Most lenders will require a copy of a Title Report from a Title company that will detail all and any liens on that property. It is the job of the escrow company in California to give a copy of this report to the buyer and seller. Usually the bank that owns the property will pay off all liens so that there is a "clear" title conveyed to the buyer. However, every bank does things a little different. The main reason a bank clears title is because a lender won't give a buyer a loan on a home that has liens still on it, therefore they can't sell it without a clear title. If you are buying a bank owned home with cash, you should be especially diligent with getting a full title report (there are different reports available with more or less coverage) and making sure title is clear before the property title is transferred to your name.
0 votes Thank Flag Link Tue Feb 24, 2009
No title company can transfer title new buyer unless all liens are cleared AT SELLER EXPENSE.

Dallas Realtor and Consultant, Mortgage Loan Officer, Lecturer regarding Credit Repair
– Lynn A. Crosby
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Feb 24, 2009
In North Carolina, your closing attorney will research the title to find all liens pertaining to the REO property. The Seller (Bank) will pay off the liens found at closing, so that you (the buyer) will have clear title to the property. Your other closing costs relating to the Property should be given to you by your Realtor and Lender.
Web Reference: http://AlphaOmegaTeam.net
0 votes Thank Flag Link Tue Feb 24, 2009
When you buy a bank owned home - part of what the bank does is pay all leins, so you will get a clear title!
0 votes Thank Flag Link Tue Feb 24, 2009
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