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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] You have to check the title record before the sale.. Posted by Ward-CA- on July 24, 2003 at 1:20 PM In Reply to: CLEAN TITLE ON FORECLOSURE SALE? posted by daniel on July 24, 2003 at 8:19 AM : Does the buyer (successful high bidder) at a foreclosure auction necessarily have clean title to the property? I understand (from reading this forum) that all junior liens get "wiped off" the title at the sale. If this is true, are there any advantages to ordering a title search prior to bidding at a foreclosure sale? : Risk: If unable to have a survey, there could be problems with the survey i.e. encroachments, etc. : Risk: If unable to perform an inspection, there could be problems with the house itself i.e. termites, electrical, plumbing, etc. : Just listed are risks I can think of, but what am I missing? Especially if all junior lien holders are "wiped off" the title at the foreclosure sale? =•=•=•=•=•=•=•=•=•=•= Daniel, No, the successful bidder at a foreclosure auction may be bidding on a 2nd, etc. Thus after the foreclosure in such a situation you would be taking title subject to the senior 1st. All liens junior to the foreclosing lien are wiped off and all liens senior to the foreclosing lien remain intact against the title of the property. From my comments in the above paragraph you should deduce that it’s vital for you to do a title search prior to bidding at a foreclosure sale. You can be subject to all manner of impediments, encumbrances, ownership issues, etc. that you wouldn’t be aware of if you don’t check the title record of the property before the sale. In a “normal” foreclosure situation you won’t get access to the interior of the subject property, so this risk comes with the territory. You also need to check with the property tax collector to determine the amount of unpaid property taxes and penalties you’re going to have to pay. Hope this helps. Follow Ups: Re: You have to check the title record before the sale.. QwikM 10:15 AM, 08/03/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Does the buyer (successful high bidder) at a foreclosure auction necessarily have clean title to the property? I understand (from reading this forum) that all junior liens get "wiped off" the title at the sale. If this is true, are there any advantages to ordering a title search prior to bidding at a foreclosure sale? : : Risk: If unable to have a survey, there could be problems with the survey i.e. encroachments, etc. : : Risk: If unable to perform an inspection, there could be problems with the house itself i.e. termites, electrical, plumbing, etc. : : Just listed are risks I can think of, but what am I missing? Especially if all junior lien holders are "wiped off" the title at the foreclosure sale? : =•=•=•=•=•=•=•=•=•=•= : Daniel, : No, the successful bidder at a foreclosure auction may be bidding on a 2nd, etc. Thus after the foreclosure in such a situation you would be taking title subject to the senior 1st. All liens junior to the foreclosing lien are wiped off and all liens senior to the foreclosing lien remain intact against the title of the property. : From my comments in the above paragraph you should deduce that it’s vital for you to do a title search prior to bidding at a foreclosure sale. : You can be subject to all manner of impediments, encumbrances, ownership issues, etc. that you wouldn’t be aware of if you don’t check the title record of the property before the sale. : In a “normal” foreclosure situation you won’t get access to the interior of the subject property, so this risk comes with the territory. : You also need to check with the property tax collector to determine the amount of unpaid property taxes and penalties you’re going to have to pay. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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