I am about to close on my first flip and am eagerly looking for another property. I'm interested in a SFH in my area that is listed as a tax lien foreclosure. Am I responsible for paying for the lien along with the price of the house? Is there anything extra I need to know before I buy a home with this type of lien?
If the right of redemption has been foreclosed through the tax lien foreclosure process, the property is free and clear.
Buy owners title insurance. If your purchase cannot be insured, be wary.
Thank you Tom!
@Lavada Lindsey without more details it is unclear.
In any transaction the contract sets the terms and determines who is responsible for what expenses related to the transaction. Normally a contract will say something to the effect of "Seller provides fee simple title free and clear of all liens and encumbrances" So in most contracts and therefore most deals the Seller is responsible for any bills related to the property prior to settlement and the Buyer is responsible for all bills after the settlement.
Thank you, Ned. So, if it's a typical contract seller will be responsible for costs incurred before the sell of the property. But after reading this I am going to be extra careful when reading over the contract.
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