I am looking to purchase a foreclosed property in Florida and would like to know if i would be responsible for a mortgage?

Asked by Angelina Deluca, North Palm Beach, FL Tue Oct 9, 2012

I am interested in buying a foreclosed property. I have a few questions about it and not sure who to turn to. I would like toknow how to find out if there is a mortgage on the property and if i would be responsible for that mirage that was taken out by the previous owner? Also what does the the title search tell me? Please help!

Help the community by answering this question:

+ web reference
Web reference:

Answers

17
Next Buyer, Home Buyer, Orange, CA
Thu Nov 6, 2014
There is free title search that you can download at http://www.nextace.com
If you need more detail, to to http://www.searchq.com since it would have more details on the ownership history, mortgage information, tax record and demography.
3 votes
Iliana Ivano…, Agent, Fort Lauderdale, FL
Sun Oct 14, 2012
Angelina,

There are few types of foreclosures but I will outline the most common here:

1. If you are to purchase a property already taken back from the original lender : all previous mortgages are wiped out, as well as delinquent taxes, HOA dues , city liens etc.
You will receive clear title and title insurance at closing

2. If you are to purchase a bank foreclosure at the courthouse : the 1st mortgage is satisfied, but you will assume any subordinate liens attached to the property . You will not receive a title insurance or "clear and marketable title". It will be your responsibility to clear the title and that can be quite costly. NOT RECOMMENDED.

3. Tax deed sales at the court house : All mortgages are dismissed, but all other liens remain. You receive a Certificate of Title and will be your responsibility to clear the title ( and pay all other subordinate liens) and obtain title insurance. It works for a lot of investors, but I will NOT RECOMMEND it for uninformed purchaser.


If you provide more specifics about the type of foreclosure you are looking to acquire, I am sure all contributors here will be able to provide you with more precise information , tailored to your case.

Don't hesitate to ask more questions - we are all here to help.

Iliana Ivanova P.A.
Licensed Real Estate Broker
Certified Distress Property Expert
1 vote
Meir Aloni, Agent, Plantation, FL
Thu Nov 6, 2014
At closing you will get a clear title (any city liens/legal fees, etc should have been taken care by different parties to the transaction)

Did you like this post? If so, please 'Like" it. Thank you!!

With enthusiasm,

Meir Aloni & Team

CRS (Certified Residential Specialist)

CDPE (Certified Distressed Property Expert)

RECS (Real Estate Cyberspace Society)

Successfully selling Broward County since 1986!
0 votes
Meir Aloni, Agent, Plantation, FL
Thu Oct 11, 2012
Sit down with a knowledgeable Realtor on this subject

Meir Aloni & Team
CRS (Certified Residential Specialist)
CDPE (Certified Distressed Property Expert)
RECS (Real Estate Cyberspace Society)

Successfully selling Broward County since 1986!

Direct phone# 954-338-5220 http://www.WeSellBroward.com

All Star Realty Inc.
0 votes
Vincent Paige…, Agent, Orlando, FL
Thu Oct 11, 2012
If you are buying at an auction you could be responsible for any liens or 2nd mortgages, back taxes, HOA fees etc. (CAVEAT EMPTOR) Buyer beware. Use an experienced buyer's agent in this transaction.


Highest and best regards,

Vincent Warren Paige, Jr.
REALTOR® | RE/MAX Showcase
Certified BPO Specialist
8934 Conroy Windermere Road | Orlando, FL 32835
Direct: 407.256.8190 | Fax: 407.264.8073
E-mail: vpaige1@yahoo.com
0 votes
Alma Kee, Agent, Tampa, FL
Wed Oct 10, 2012
If you're buying at the courthouse then you WILL NOT get title insurance andNOT be assured of a clean title and cannot inspect the property for significant defects, i.e. toxic chinese drywall, sinkhole, toxic mold, cement filled plumbing pipes, radon, etc. Expect to pay money for legal fees to get a clear title, evict a tenant or squatter, etc.

As a "rookie" investor at the courthouse you can easily get burned so don't invest any amount you are not willing to lose. Or take the time to learn the ropes or hire someone to teach you. If something sounds too good to be true... then you may even get stuck with toxic cleanup from a dry cleaner or gas station!

Good luck!

Alma Kee, Tampa
http://www.SoldOnTampa.com
0 votes
Ann Ryan, Agent, Doral, FL
Wed Oct 10, 2012
Angelina, simply put, find a buyer's agent to represent your interests in this sale. They should be able to answer all of your questions.
0 votes
and how would i do so?
Flag Wed Oct 17, 2012
Scott Godzyk, Agent, Manchester, NH
Wed Oct 10, 2012
If you are buying at an auction you could be responsible for any liens or 2nd mortgages, back taxes, hoa fees etc. If you are buying a bank owned home that was taken back by the bank at foreclsoure auction, they wipe out all liens and mortgages and there is no extra chagres. You should have a buyer broker who is well experienced with selling bank owned homes assist you through the buying process.
0 votes
Tom Priester, Agent, Tequesta, FL
Wed Oct 10, 2012
Angelina,

I am assuming you are talking about participation at a foreclosure auction that are held daily in Palm Beach County. Do not enter into this process without a complete understanding of the process or you may learn an expensive lesson. You need to understand the rules of the game, who the party is that is foreclosing, what other liens there may be on the property, etc. If you want more information on the auction process please feel free to give me a call.

If you are talking about buying a property that the bank has already foreclosed on and is on the deed that is a completely different animal. You will be given a special warranty deed and all other liens should be satisfied prior to closing. You should also be provided an owners title insurance policy that should protect you from any future liens that were not discovered during the lien search.

Keep in mind that foreclosures are not always the best value out there in today's market. Many banks are pricing these assets at ridiculous levels as they now understand buyers are out there with the preconceived idea that because they are buying a foreclosure they are getting a "deal". Be careful and have a well qualified agent working diligently to protect your best interests.

I know the market in North Palm Beach, and the rest of Palm Beach and Martin Counties, very well so if I can be of service in any way please do not hesitate to give me a call.
0 votes
James Furlong, Agent, Brookline, MA
Wed Oct 10, 2012
If the property foreclosure process has been fully and dutifully completed the seller will provide a clean title at the closing. Properties are foreclosed upon by many entities, not just banks and the foreclosure process is not always dutifully completed (even when banks do it). Beware, move forward cautiously and in the companion of qualified advisors - a realtor, a title expert, a lawyer etc. Best of luck.
0 votes
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Wed Oct 10, 2012
-
Angelina,

See the 2013 Mortgage Progams to purchase Forclosures here: http://www.pro-option.com

Then contact me for how to get your best deal.
0 votes
Wayne Solomon…, Agent, Plantation, FL
Tue Oct 9, 2012
Homes for sale in their current condition can sometimes offer a bargain. Home buyers who are considering taking advantage of such a deal need to understand the details, however.

According to Bankrate.com, buying a home in its current condition is commonly
made when a bank is selling a foreclosed home or in short sales, which is when an
owner's mortgage balance is greater than the property's value. One expert told

Bankrate.com banks may negotiate some repairs in the case of foreclosures,
particularly if they concern the property's safety may fall under government
mandates.

Warranties and repairs

Not all homes for sale fall under these categories of foreclosure or short sales,
however. Some home sellers simply do not wish to pay for certain repairs. Buyers
need to work with their real estate agent in situations like these to negotiate
the best possible price for the home.

Bankrate.com notes needed repairs may not make a house a bad buy, particularly if
the repairs can be made over time. If defects are vital, such as problems with
electrical or plumbing systems, then the added expense immediately after
purchasing the home may be more difficult financially for the new homeowner.

Work with a qualified Realtor and Title company.


Wayne Solomon, P.A.| Realtor
Coldwell Banker Residential Real Estate
2301 Glades Road|Boca Raton, FL, 33431
C: 954-668-5498
E: Wayne@Listing-Agent.Net
0 votes
Angelina Del…, Home Buyer, North Palm Beach, FL
Tue Oct 9, 2012
Does this apply to auctioned properties?
0 votes
Hello this applies to auctioned properties as well. You are basically buying a home as-is in its state of condition. You should link up with a licensed realtor who can guide you through the process. If you need anything please feel free to contact me

Thank you,
Tamika Moses
Keller Williams Realty Partners SW
954-404-4646
tmrealtor@yahoo.com
Flag Tue Oct 9, 2012
Kate Stout, Agent, Fort Lauderdale, FL
Tue Oct 9, 2012
Hi Angelina,

If you purchase a foreclosure or short sale, you are only responsible for paying the agreed upon purchase price no matter what the previous owners may have owed. A title search tells you if there are any liens on the property.

I'd welcome the opportunity to speak with you about what you are looking for and send properties that match your criteria. I can then make arrangements for you to se those that interest you at your convenience.

Please feel free to call, text, or email me anytime, day or night.

I look forward to working with you!

Kate Stout
954.895.6939
kmstout@gmail.com

Castelli Fort Lauderdale Real Estate Services
3908 N. Ocean Blvd.
Fort Lauderdale, FL 33308
0 votes
Mathew Tarka, Mortgage Broker Or Lender, Fort Lauderdale, FL
Tue Oct 9, 2012
Hi Angelina,

You can find if there is a mortgage(s) on the property by looking in county records website for the county the property is located. You would not be responsible for that mortgage from the previous owner. A title search, performed by a title company will show if their are any liens / mortgages on the property.

Feel free to email or call me anytime.

Matt Tarka
Licensed Mortgage Professional
Serving All of Florida
Direct: 954-605-2450
Toll Free: 888-246-9060
Fax: 954-343-8098
mtarka@clearmortgagelending.com

Clear Mortgage Lending, Inc
1301 East Broward Blvd
Suite 330
Fort Lauderdale, FL 33301
http://www.clearmortgagelending.com
0 votes
Tamika Moses, Agent, Pembroke Pines, FL
Tue Oct 9, 2012
Hi angelina,
If you purchase a short sale or a foreclosed property you will not be responsible for that mortgage. A title search tells you all of the liens and previous owner of a proerty. For more detailed information you can reach out to me and I will be more than happy to speak to you.


Thank you,
Tamika Moses
Keller Williams Realty Partners SW
954-404-4646
tmrealtor@yahoo.com
http://flapropertiesbytmoses.kwrealty.com/
0 votes
Jesus Pazmino, Agent, Weston, FL
Tue Oct 9, 2012
Hi Angelica,

Buying a foreclosure through a listed property is usually always closed through the title agent. The title agent will run a lien and title search that will show any defects in title and give the bank the opportunity to correct those defects. In the end, unless otherwise stated, your title should be free and clear. You do not pickup any debts. This goes for any listed property, shortsale, regular Sale, foreclosure.

Please feel free to call me and I can go into more detail.

Regards,
Jesus Pazmino PA
Realtor
305.432.4923
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more