Seller has court liens and its under HUD.Who will be responsible

5 Replies

Hello BP- I found a property its under HUD and county shows seller has couple of court liens on it. Even though they are selling it as-is, does it mean new buyer will be responsible for new liens? (However Liens is under Seller's name).
Related questions;
- HUD homes are always be cleared from lien(s)? 
- Title company will check for it, but it'll too late in the process. Any other way of finding out if lien was paid out and its all clear? 
- Can I add something like following line on the HUD property contract; 
As-is, but on the contingent upon ALL lien cleared on the property.  

Thanks
Sal 

No need to worry you get a special warranty deed signed by secretary of HUD.This means you will not inherit any liens and you will have title insurance to protect you. HUD contracts must be filled out precisely and there no room for adding contingencies Failure to have a contract filled out correctly will void the contract make sure your agent is experienced in doing HUD deals

When you say "under HUD" I'm guessing you mean it is a HUD REO? If so,mint will come with clear title, as per the stand as HUD contract. The lien holders would/should have been notified in the foreclosure. I Strongly advise you use your own title co.

also if it is truly a HUD sale the seller is HUD and would say that on the Deed . It is likely your county website has not been updated

Court liens? Are these judgments?

I'm with Wayne and Steven that you need to determine who the actusl seller is. If an REO, seller is Secretary of HUD and sign by its authorized regional assistant secretary or person in similar capacity.

thanks guys! greatly appreciated.
yes, seller has couple of court judgments against the property. 

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