Is the buyer at a forclosure auction responsible to payoff any leins?

Asked by Bruce, Pleasant Hill, CA Sun Oct 30, 2011

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Pacita Dimac…, Agent, Oakland, CA
Sun Oct 30, 2011
Watch this video on foreclosure auction guide....this should help

http://www.youtube.com/watch?v=1CanJbhGdJM&feature=youtu…
1 vote
Pacita Dimac…, Agent, Oakland, CA
Sun Oct 30, 2011
If you are going to the auction make sure you know what you are bidding on. It is not unheard of to hear of cases where the buyer thought he had bought the property when in fact there may be other liens, including the primary lien holder's that were not satisfied.

Unless you are a seasoned buyer/investor you may be best served by buying an REO(bank-owned property) listed for sale on the MLS. Use your realtor to help you find these. At least you will feel safe knowing that upon close of escrow, you will receive a title free and clear of other liens.
0 votes
Ron Thomas, Agent, Fresno, CA
Sun Oct 30, 2011
You will certainly have the address before you go to the Auction:
Go visit a Title Company and tell the Escrow Officer what you want to do;
They will run a Prelim and even make up a HUD1 for you,
They will advise you about the Liens and Title.
When you win the property, you will want to run in thru the Title Company, and you will already have the relationship.

So, rather than telling you how to handle the liens, I am telling you how to avoid them.

Good luck and may God bless
0 votes
Barbara Wils…, Agent, Danville, CA
Sun Oct 30, 2011
it is my understanding that yes, the buyer is responsible for all liens. Unpaid property tax, HOA dues and fines, even contractor liens that may be tied to the house. I believe that it is possible to find out about any recorded liens by checking at the county recorders office, but there may be unrecorded liens. And of course, any repairs are your responsibility, and there are no disclosures. If the foreclosure auction is at the county courthouse, you will have to pay with all cash - no loans are accepted there. Caveat emptor! these are not really for beginners, but you can certainly learn something by attending an auction.
0 votes
Vickie Nagy, Agent, Palm Springs, CA
Sun Oct 30, 2011
Bruce,

There is no title insurance and the property may have liens that cloud the title. Recommend that you proceed with caution and seek information on existing liens, HOA, Tax, etc.

Kindes Regards,
Vickie Nagy, broker Associate, BMC Real Estate
0 votes
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