Q> If I purchase a foreclosed home at auction am I responsible for the outstanding liens?i.e. taxes,utilities; etc
ANSWER: Buying at a foreclosure auction is risky. First, you may not be able to inspect the property. Second, you’ll still end up owing any unpaid property taxes
and junior liens. Junior liens are those that were put on the property after the debt which caused the property to go into foreclosure. Third, buying at auction also comes with the possibility that the former owner will try to exercise his right of redemption by coming up with the cash to buy the house back within a certain period of time.
On the lien issue, you should always research any existing liens, unpaid taxes and/or previous construction
debts by ordering a full title search on the property.
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