Boston, MA · Member since 2018 · 46 posts · 9 votes
Hi, I found a very attractive property in a nice neighborhood that will be sold on Foreclosure Auction.
What do I need to check or to be concerned of from financial perspective? I checked bills and taxes.
What about the title? What if there are other mortgages and liens on this house? Who is responsible for it? Logically person in default should be responsible for all other debts, but I want to clarify.
You could waste your sanity, time, and money having an attorney file a quiet title action to something you have no standing to file but, the easier and cheaper (and more fruitful) route would be to get a title report to show all of the liens on title, and then match the foreclosing entity up with their priority on title. If the foreclosing entity is in first lien position, all other liens behind the foreclosing entity will be wiped out in foreclosure, absent very few and very specific exceptions (IRS, HOA, some utility liens, etc.). Even the IRS priority lien will sunset after a short period of time.
You can even have an attorney (A competent and capable one) to confirm that you've done the right research and have drawn the right conclusion. Once confirmed, go get your cash ready and plan to show up on the courthouse steps and buy the property of your dreams (Assuming no one outbids you).
Talk with the title company to know exactly what liens are on the property. Get a complete list. THEN contact a skilled and capable real estate attorney to consider a quiet title action. This would wipe away the liens through a suit.
I really don't know if this can be done or not. You obviously will not owe the liens.
You could waste your sanity, time, and money having an attorney file a quiet title action to something you have no standing to file but, the easier and cheaper (and more fruitful) route would be to get a title report to show all of the liens on title, and then match the foreclosing entity up with their priority on title. If the foreclosing entity is in first lien position, all other liens behind the foreclosing entity will be wiped out in foreclosure, absent very few and very specific exceptions (IRS, HOA, some utility liens, etc.). Even the IRS priority lien will sunset after a short period of time.
You can even have an attorney (A competent and capable one) to confirm that you've done the right research and have drawn the right conclusion. Once confirmed, go get your cash ready and plan to show up on the courthouse steps and buy the property of your dreams (Assuming no one outbids you).
Talk with the title company to know exactly what liens are on the property. Get a complete list. THEN contact a skilled and capable real estate attorney to consider a quiet title action. This would wipe away the liens through a suit.
I really don't know if this can be done or not. You obviously will not owe the liens.
I think you are referring to a tax sale. Quiet titles are generally needed in these cases.
As Ron pointed out above, in a Mortgage foreclosure, any junior liens would be wiped apart from some of those he listed.