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Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 36960
Experience:  30 years in civil, probate, real estate, elder law
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I have looked at a Foreclosure document filed in Duval

Customer Question

I have looked at a Foreclosure document filed in Duval County Florida in July of 2015. The total amount due was $215,000. Last week, the house was sold in a sheriff's sale for $51K. There is also a lien filed against the property for a medical bill in the amount of $52,000. I have been contacted and offered the property for $88,0000. I am told that a sheriff's deed will be filed shortly on the property. Is it safe to get involved in this. What are the steps that I should take to protect myself in this investment.
Submitted: 1 year ago.
Category: Legal
Expert:  Ray replied 1 year ago.

Hi and welcome to JA. I am Ray and will be the expert helping you today.

The seller here may not have clear title.Here are the terms of a sheriffs sale in this county.

Does the foreclosure or tax deed sale erase all other liens on the property?

No! There may still be other encumbrances (judgments, priority mortgages, taxes, or liens) that survive the sale. The winning bidder takes title to the property subject to all defects, liens, encumbrances, and matters of which he/she has or could obtain knowledge. It is the bidder's responsibility to perform all research regarding the property, including the value, title defects, liens, mortgages, or other encumbrances. The Clerk's Office does not guarantee a clear title and is not responsible for any encumbrances on the property purchased at auction.
The laws regarding foreclosures are extremely complicated. It is recommended that all bidders perform a title search and consult an attorney prior to placing a bid.

https://www.duval.realforeclose.com/index.cfm?zaction=HOME&zmethod=START#COT

You want to be real careful here, as the sheriff states the buyer here did not get clear title.They apparently have not cleared the liens on the property.You buy this only if it is worth it to you to pay off these liens here.Otherwise the original buyer should clear the liens by a suit to quiet title and get an order of clear title.Then you know you are getting a clear marketable title here.

You are getting flawed title since you know there are existing liens which remain on the title.You have to decide if you want to go there.Not sure this is worth what they are trying to flip it for given the title issues with liens still on the property.

I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again.

se.com/index.cfm?zaction=HOME&zmethod=START#COT

Customer: replied 1 year ago.
I contacted the highest bidder at the sherrif's sale, who I assume is the seller to me should I wish to move forward. They state that they will have a warranty deed to transfer at settlement. Would this mean that the secondary line filed NY a hospital would have to be settled by them? It seems unlikely to me, a novice in such transactions that a bank will be satisfied with a 51K sales on a property with an unpaid mortgage of over 200K and another line of 52K filed by hospital? Should I be safe in sending a deposit to title company for escrow
Expert:  Ray replied 1 year ago.

You want them to show you a recorded release of lien here for any liens they claim to have paid off.If they have that then it s differe3nt ending and you know you have clearer titlle.

I seriously they paid this off either and are attempting to sell you damaged goods here.You want to either offer way less of insist on a release of lien.This is the signed acknowledgement they dealt with the lien here.

I fear there are too many liens here and you should look for a better deal.I think these guys bought this and it is more troubled than they realized.I see it all the time.You were smart to look here before you leap.The owner here likely has to file suit to quiet title, see who shows up and resolve the liens.Thats the only legal way to clear title other than release of liens and paying them off.

Thanks again I appreciate the chance to help.

Expert:  Ray replied 1 year ago.

If you can leave a positive rating when we re done it is always sincerely ***** *****