This may not be NYS specific, but I'm looking to invest here so I've been going to the auctions at the Brooklyn courthouse.
My question is: When you buy a property at the courthouse auction, the paperwork talks about a mortgage balance, judgement, tax lien, etc. Do you have to satisfy these debts in addition to the auction price, or are you essentially buying a 'clean' property if the state is auctioning it?
Followup question: Can there be title issues with these types of property or is the state essentially selling it with a clean bill of health?
Last question: You have to give 10% down in cash or check at the courthouse. Can the final 90% be financed through traditional financing? Does it change depending on if it's your primary residence or investment home?
My understanding is what ever the judgment amount is that is the base price. So, lets say you look at the price at auction to be 100K, that is the minimum. If it is a mortgage foreclosure, then you might have other liens, but in Brooklyn, I think those are paid at closing.
I have been to the BK auctions a couple of times. All the stereotypes about NYC real estate.
Hi Jimmy, did you ever find the answers to your questions? Curious about the paper debts, if those are in addition to the auction price?
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