I found a property in Pittsburgh that I would like to bid on through Xome.com.
The bank took possession of the property from the borrower in January and it is being auctioned in April.
I pulled the Docket and there are various liens including the mortgage, taxes, and child support.
My question: If I win the auction, will the child support lien from the foreclosed borrower stay on the title when I take ownership from the bank?
Read the terms....typically REO's are free and clear, with title insurance. But, do not take the "free" title insurance....get your own.
@Chris M. if you are bidding on properties at Sheriffs sale be super careful. I attend the Allegheny county sale and the Pittsburgh treasurer sales every month. There will not be one in April. Its been postponed. If its listed on the MLS then chances are the title is free and clear. You should still hire your own title compnay to research and handle the closing.
@Chris M. as others said if it's REO and listed on the MLS then it's likely free and clear. However if you go to Sheriff's Sale then it's likely you will inherit those.
You need to discuss with a title agency an/or attorney to investigate this particular property.
If you do an an auction through Xome and are granted a contingency period you could probably do this due diligence during that contingency period.
Thanks everybody for your replies. I looked at the purchase agreement and it implies the buyer will get a Special Warranty Deed or Equivalent.
It doesn't state free and clear though.
@anthony angotti I like what you suggested to do my due diligence prior to closing, however the way the contract reads if I back out, I would lose earnest money... Might be worth it though if the title company won't insure.
Any recommended title companies that you guys recommend? I want to work with a local owned Pittsburgh one preferably.