REO Sale with Lien Question- Document Attached

1 Reply

I'm looking to start going to a few options and luckily my state has all deeds, liens, etc listed online.  Im looking at a property now that is showing about $18k in tax liens on it.  I've attached the documents.  In my understanding it means that if I won the property the proceeds would cover the liens and the rest would go to the mortgage.  IE I would not owe anything.  However I want to verify that is correct.  Obviously I'd want to work with a title company to make sure those are paid 100%.

Not really. the proceeds cover the foreclosing entity first, which in this case, appears to be the lender. If there is anything left over after the sale, it goes to the IRS then to the state and finally back to the borrower, in that order.

No, you don't want to work with a title company to make sure those are paid. if you are bidding, and you win, those get paid through the foreclosure trustee/attorney if any left over after lender is paid and if not, they get wiped out (IRS has redemption rights for a period of time) and don't get paid (All things being equal). Don't over complicate it. Just look at the priority of who gets paid and make sure the top of the list is the one foreclosing.

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