Buying Property at an Auction site

3 Replies

I'm trying to buy a property at auction.com, but when i ordered a preliminary title report, it appears that the property has 2 tax liens and 1 HUD lien on it in addition to the mortgage balance. Auction.com does not disclosed the reserve amount, however the property starting bid is $200K and ARV is about $700K. More than likely this property will probably get bid up to $400K. My question, is the winning bidder stuck with the liens if they get the property? Also is there any other way to find out if all liens on the property will be cleared by the seller before closing.

I believe most properties are sold free and clear , but not all . 

Why not call them to ask ?

The specific auction terms for that property should tell you if they are offering title insurance. Additional junior liens are common and they got wiped out in the foreclosure auction.  The back property taxes are paid by the bank selling the property.