foreclosure
Has anyone been on the buyer end of a foreclosure and had a problem with liens owed by sellers? Did the bank make buyers settle the dispute?
SharkeyRE LLC - Tequesta, FL
SharkeyRE - #SouthFloridaBroker
Empire Realty - Upland, CA
Empire Realty Upland, CA - Full Service at a Discount
Ron,
If you mean subordinate 2nd and 3rd liens, yes. If there is no equity left to satisfy the subordinates the 1st lien holder will pay off the subs to sign off of the title so that the sale can proceed. If there is equity left then the subs will want to get some money from the sale. It really depends on how bad off the subs are.
Take care!
RJH
Dec 30, 2007 01:39 AM
Coldwell Banker - Oconomowoc, WI
Waukesha County Realtor Real Estate agent. SOLD!
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland
I was on onw where the buyer moved a lien to another property.
I was on another one where the tax lien was paid from the gentleman's retirement account.
I was on another one where it was paid out of equity at settlement.
All complicated by the fact that the Release of Lien has to be filed before the buyer could get MI.
Good luck.
Dec 30, 2007 01:45 AM
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros
Welcome to the ugly truth about foreclosures. If money is owed and not uncovered. And often it is not. The debt ends up squarely in the lap of the new buyer. The claim is against the property sooo. I always strongly especailly in this case recommend title insurance for the new buyer. If he cannot get it then I advise not to buy
Dec 30, 2007 01:49 AM
Sibcy Cline Realtors® - Cincinnati, OH
REALTOR, PBD SFR SRS
If you mean a short sale the seller needs to clear title by negotiating with all the lien holders.
Dec 30, 2007 03:22 AM
RE/MAX Legacy - Chalfont, PA
REALTOR, ePro, CDPE
Basically, I was told that a foreclosure is the same as any other transaction. The difference being the bank is the seller and must come to the table with clean title. I have avoided foreclosures for about 2 and a half years now and am ready to get my feet wet. Any experiences would be welcomed. Also, I am assuming that each state may treat foreclosures differently. I am from Pennsylvania. Take care
Dec 30, 2007 09:40 AM
Rainer
36,787
36,787
Ron Bancroft
REALTOR, ePro, CDPE
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