Hearsay is NOT the best way to… - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on July 07, 2009 at 09:57:46:
…get educated on real estate.
To begin with, real estate laws differ from State-to-State, so your simple question(s) would require more information to assure an accurate response.
Your first query seems to suggest that you’re contemplating buying a property directly from a lender. When that’s the case, you’d typically received the appropriate transfer deed (i.e., Grant or Warranty) used in your state AND receive title insurance. I would expect any liens would be the responsiblilty of the seller (lender) who would pay from their sale from escrow proceeds.
I have never heard anyone make a claim that a registered non-profit entity purchaser would be exempt from liens that either attach to the property.
If the liens are senior in priority to the loan that the lender presumably foreclosed on, then they remain attached to the property. If junior liens are generally wiped off the property, however the debt remains (in the case of involuntary liens like judgments). The special case of IRS liens is that they, too, are typicially wiped off title after a foreclosure, however the IRS maintains a 120 day right of redemption on the property.
So, I don’t have a clue as to where the non-profit (i.e. IRS 501-C(3)) organization would have any bearing on existing liens of record or receive any different treatment.
I strongly suggest that you familiarize yourself with the title laws in your state, at least as to the basics, as by your post it sounds like you have made some assumptions that could get you in a pickle if you rely on current understanding. Cozy up with a single title company and they may have some free info or inexpensive seminars that will get you started in title law for your state.
I made this mistake in my early days and it wasn’t until after I “inherited” someone else’s liens on not one but two occassions (I’m a slow learner) and finally got serious about studying title.