I'm looking at purchasing some properties that are currently county owned. I'm just getting into real estate investing so I have a few questions. I have already determined market value, but now I'm trying to determine if there are any additional liens on the property. The most common thing I'm seeing are liens for maintenance or mowing by the city. Does that mean I would need to pay that off once we purchase the property? Any advice would be appreciated! This is my first foray into real estate and it is a bit overwhelming!
@Jenna Pedersen Welcome to BP and welcome to the world of REI!! I'm from Baltimore but how it works here is YES, you must pay off all liens against property before property can be transferred and new owner has the ability to record deed. I'm pretty confident it works that way throughout the country but check with some local investors. Type in Edmond, Oklahoma with your post and BP members that have those terms as keyword alerts will be notified and may respond to you.
I wish you the best!
Hello Jenna...most liens are wiped away through a tax deed but that is where your due diligence and check with the county to see what needs to be paid. Not sure how it works in OK, but here in FL we pay the code violations after the tax deed. You would need to pay the liens prior to selling it and usually there is interest that accrues while they are not paid off. But you can certainly buy the property, rehab it, and put renters in there and have them help pay off the liens and for the cost of the quiet title if you go that route. Just some ideas. Good luck!
Originally posted by @Jenna Pedersen :
Thank you both @Anthony Yannucci @Eric H. One follow up question. Is it common for properties to have liens? I am doing my diligence on 8 different properties right now, but not all of them have liens that I can see. Should I expect to find liens on all the properties? Thanks!
I usually always figure there will be liens. I usually figure anywhere from $3-$5k, and factor that into my bid for the property at auction.