Foreclosure Auctions and liens

3 Replies

Hi  BP!

I am considering buying a SFR through the county foreclosure auction. Does anyone know what happens with any existing liens that may be on the house. I'm not sure if laws vary, so this is in Florida. Other than going to my title company and paying for a title search on a property I may not end up getting, is there a way to do a preliminary title search to know what I am getting into before hand?


Existing liens may survive or may not. I'm not up on FL laws, but some liens generally survive (IRS liens, county/government liens, liens without proper notice, etc.) in almost all states. Junior liens may survive in some states (e.g. NC) depending on state laws.

Regarding "is there a way to do a preliminary title search to know what I am getting into before hand?" Yes. Three short answers. Hire a paralegal for $20/hr. or less to educate you 2) take a community college legal class (paralegal 101 type) 3) obvious: pay your title company to (hopefully)  show you how to do the preliminary searches yourself, and employ them for your bids. Generally preliminary title work isn't the gating factor for foreclosure (trustee) sales. There are exceptions for sure. But educate yourself is my best answer.

Thanks for the reply Chris. I have an apt with my title company for next week, so hopefully many of my questions will be answered.

as an additional and related question - I am looking at an auction property (MD) that may have a BK proceeding behind it and it is occupied - title docs state it is the buyer's responsibility to evict or get rent out of the occupiers. I walked away from an even better deal in Germany like this as it would take a long time (rent laws) and maybe get yourself damaged evicting unhappy "free" tenants - any thoughts?



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