I am looking to purchase a property through Homesearch in Illinois.
Nationstar received a sheriff deed back the middle of 2014. Subsequent to them receiving the deed, both the city and the local sewer district have placed liens on the property but the rest of the title seems OK.
The auction will deliver a Special Warranty Deed and there are no documents attached/listed on the Documents tab of the auction.
If I were to win the auction on Homesearch, is the seller going to pay those liens off as part of closing? Or will I receive the property with those liens still in effect? Or will I have to bring the cash to the table at closing and pay them off in order to close the transaction?
This will be an all-cash deal so I am not worried (at this point...) about a mortgage or banks involved.
The liens total about $9,000 (cutting weeds, trash hauling, boarding the place up ahead of the winter) so maybe I can negotiate with the city and get them reduced in return for fixing the place up, but I doubt I can get them wiped off completely.
Thanks for any help/insight!
Originally posted by @Matt Galas :
If I were to win the auction on Homesearch, is the seller going to pay those liens off as part of closing? Or will I receive the property with those liens still in effect?
That depends on what the contract says. Read and understand the contract. Normally you get title "free and clear of all encumbrances" but that is a negotiable point. That is the point of the written contract, to make these issues clear.
Ned Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/
@Ned Carey The fun part is you won't see the actual contract until after you "win" the auction. And typically these homesearch contracts are not negotiable.
John D., Palm Vacation Rentals | [email protected] | 4155195039
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!