Foreclosure Practice (Auction) in NJ
Hello,
I have started to investigate obtaining a house through a sheriff's auction in Monmouth County NJ. My plan is to buy a single house, do repairs and upgrade and possibly sell in a few years to reap a tax free program that exists. I also am looking to downsize and reduce my tax burden from where I am now.
There are some strange things that I have seen and I was hoping that this forum would be able to answer my questions.
I have been watching a house auction that has been delayed many times. This seems normal. My concern is how to research the extent of the liability that comes with houses.
From what I have read, the secondary liens are removed at auction and all I need to worry about is back local taxes, IRS taxes and water/sewer bills. Sounds like a second mortgage might be forgiven but that doesn't make sense.
Also, I can easily find the local property taxes, but what about other liens. County clerk can provide?
Do auction buyers typically do a title search ( pay for this?). Seems strange that I would drop $200 for a title search when the house might settle. They also don't announce the starting bid proposed by the plaintiff until the moment the house is put up for auction. Does everyone assume that is the amount of the primary mortgage?
Thanks for all the input.