Lien, Leins, Leins

1 Reply

Statement: After looking for a foreclosure, looking at the numbers, not able to view the property because owners will not allow you, and the deal is so good (location location location) you go to bid on it at the court house anyway.
Question: What if the property has leins i.e property taxes, IRS (which have 120 to redeem), construction, and HOA, and you pay to quite the title do you still have to pay the leins#1? #2 if so say for instance someone has a construction lein that pushes the foreclosure but also has a mortgage will i still have to pay the mortgage or not? And, #3 What is the order of the leins I know IRS, property taxes then what?

This is what I think I know but need clarification leins priority is based upon date that the lein was submitted. So say for instance mechanis lein sumbitted 02-02-07 then Mortgage submitted 05-05-07 who should get paid first and what am I responsible for.

In western states you would go to a title company before bidding and get a commitment from them to provide title insurance based on the present state of the title. In other words they will check out the details and make sure they know what is presently on the title and what they might mean.

You can then bid knowing where you stand with respect to the title.

I expect you can do the same in eastern states where lawyers handle closings but title companies offer the insurance.

John Corey