Posted by Bill H on December 16, 2005 at 18:40:32:
I would simply ask the bank or auctioneer before the sale, “Is this property being sold free and clear with marketable title…or…AS-IS WHERE-IS” that will give you all the information you need.
Good Luck,
Bill H
House auction - NEED HELP!!! - Posted by Chad
Posted by Chad on December 16, 2005 at 17:54:35:
I am a real estate investor in Wisconsin. I have bought and sold a few properties over the last 8 years, but a new situation came up and I have some questions.
There is a house that will be auctioned off on Monday. The situation appears to be a forclosure, and now the bank hired an auction company to sell the place. I found on my local county website that the house has delinquent taxes due, so I am thinking the buyer would have to pay these back-taxes. I know there are closing costs, as well as some “security” charges that the auction company has stated get charged to the buyer.
My question is, does anyone with experience in this situation know of any other charges that I could be responsible for if I am the highest bidder? I would hate to buy the house and then find out there were other charges that I am responsible for.
Any help or advise would be GREATLY appreciated!
Thanks
Chad - WI
Re: House auction - NEED HELP!!! - Posted by JETT
Posted by JETT on December 16, 2005 at 21:52:25:
Each state has different rules, so you should spend some time educating yourself. Also do a title search to see if there are any leins. Title companies will do this for free.
Re: House auction - NEED HELP!!! - Posted by Killer Joe
Posted by Killer Joe on December 16, 2005 at 19:45:54:
Chad,
Get a preliminary title report from your title company if you have time. (You may still have time if you act fast.) If you eventually end up as high bidder you will need a title report and title insurance anyway, so they may do this for you for free, mine will.
Back taxes will be a senior lien to the mortgage, but such things as mechanics liens, second mortgages and the like may get wiped out. Spend the time on the net reading your states regs regarding hierarchies for foreclosures and who walks away with what. You should familiarize your self with this info for future referrence anyway even if you don’t buy the property. It’s time well spent.
You need to find out such things as if there is a redemption period, do personal judgements attached to the property ‘follow the land’, and can a mechanics lien be attatched after the sale, among other things. Do you know the amount owed being foreclosed on, and what those ‘security charges’ are?
Hopefully someone familiar with Wisc regs can help you out here, but your due diligence should include such info straight from the source.
Additionally, you will want to find out the time frame that it will take to give you clear title from the date of the sale, assuming you can get one. Your title insurance may include exceptions to certian items until such a time as they have proof these items have been cleared, paid, or removed. This can take a lot longer than you think.
Good luck,
KJ