I am interested in purchasing a bank owned forclosure home.

Asked by Amy, 86426 Wed Jan 28, 2009

I noticed that the house has delinquent property taxes and a lien on the home. Would the bank be willing to pay this or would I have to come out of pocket for this?

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Steve Etheri…, , Bullhead City, AZ
Wed Jan 28, 2009
When a home has went thru foreclosure liens will be wiped out for new owner. If there are HOA dues, taxes, etc that are possibly not liens, title and escrow company will use proceeds from sale out of the banks side. I live in the 86426 zip code and the escrow companies are efficient.
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Stew Keene, Agent, Scottsdale, AZ
Wed Jan 28, 2009
Hi Amy,

As Lynn stated, the bank or seller is responsible for the taxes and they need to be paid first before any transfer of title can occur. The taxes owed always puts that debt in what is a "first lien position" before the finance company so in order for them to sell the property, that tax debt needs to be cleared.

To transfer title to property you must have what is called "equitable title". All encumbrances or debt would have to be cleared first.

Hope this helps you,

Stew Keene
Ph (480) 220-7491
Fax (866) 711-8573
Keller Williams - Scottsdale, AZ
2008-2009 Master of Real Estate award recipient
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Dallas Texas, Agent, Dallas, TN
Wed Jan 28, 2009
GREAT QUESTION: Bank handles all liens working in concert with title company. No property can be sold UNLESS seller has cleared all liens. You ARE NOT HELD responsible for any of those payments
Web Reference:  http://www.lynn911.com
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