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Maverick, Lawyer
Category: Real Estate Law
Satisfied Customers: 6391
Experience:  20 years professional experience
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If I purchase a foreclosed home at auction am I responsible ou

Customer Question

If I purchase a foreclosed home at auction am I responsible for the outstanding liens?i.e. taxes,utilities; etc I want to flip homes. I've researched and gone to sheriff sales/auctions to watch. I even have emails coming to me with 'Sale List' from firms
that represent the foreclosure homes; but I'm VERY unclear as to what past amounts I will be responsible for that are not announced? I've even gone as far to pay for title searches on 5 homes I liked and gone to the auction the next day to try to bidl if title
search came back clean...but then all 5 homes I did title searches on 'stayed' and didn't get auctioned; so I lost my title search money and a lot of time. Please only respond if can give me 'real' information. I do not need general information and told to
check with the city court house. I need to know if I walk into the next court house auction; is it worth the risk to bid on any property that goes up; as long as I know the comps in area? How much of the unpaid do I really need to be concerned with? (II was
told by one guy at auction that won; not to worry about past liens - as they are washed away when if I have winning bid. What is correct?
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  Maverick replied 2 years ago.
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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Customer: replied 2 years ago.
Would appreciate refund please. I appreciate your response and see your efforts - but response is mainly general knowledge that I stated in the question. I was looking for much more targeted and clearly response. Not looking to go back and I'll take my question to forum on my real estate site. I was looking for more well defined quick legal facts
Expert:  Maverick replied 2 years ago.
No problem. I will put in the request for you now. Thank you for giving JA a try.