Posted by Bill H on November 24, 2005 at 18:32:24:
Todd:
Before you charge off to the auctionDO YOU DUE DILIGENCE! If there is an IRS lien they are granted an auctomatice 120 right of redemptin period after the sale.
Plus, in some states certain other liens may or may not be expempt from the sale…such as medicare liens, mechanics liens, etc…check and find out if these exceptions might apply to you.
And: do not get carried away at the auction…set your price…and stick to it…there will be lots of other properties.
I am a RE newbie from NC. My understanding is if a 1st mtg holder forecloses on a property, any junior liens are wiped out. My question is if I outbid the 1st mtg holder at the auction sale for the property or anytime during 10 day upset period, will I have clear title since I outbid the 1st mtg holder? Or do I have to wait until 1st mtg holder buys and actually owns the property after 10 day upset period to get a clear title? Thanks for any and all responses.
If you bid at a F/C auction and the bid is accepted by the trustee, yes you will wipe out the 2nd and any liens on the property. However if your bid is high enough where there is an excess, the overage will go to pay on the second after paying the expenses of the foreclosure sale.
The auctioneer will make all of those announcements on the day of the sale. Call the trustee or auctioneer well in advance of the sale to ask these important questions.