Auction or NTS Sale – what liens / debts do you have to worry about?

[werewolf34]

If you buy a property off the courthouse steps, which of the possible liens / loans / debt which can be on a home do you have to worry about?

– 2nd mortgage
– HELOC
– Mechanics lien
– Tax lien
– HOAs due
– anything I’ve missed

Thanks!

[UCGal]

I am not an expert on this – perhaps Adam can chime in…

I believe that 2nd mortgage and HELOC are wiped out IF it is the first mortgage holder that is doing the forclosing.

I believe tax liens, mechanics liens, HOA (if they have a lien placed), lis pendens, etc are all things the new owner gets stuck with.

I could be wrong.

I know the rules are a little different in the less common case where it is the 2nd mortgage holder (or HELOC holder) who is forclosing… I don’t think the first lienholder gets wiped out.

On tax liens – I’ve read different things – some suggest they get wiped out in CA, but perhaps not in other states since this is an auction OR judicial forclosure state. If it goes to auction, it’s wiped out. But I’m not absolutely certain on this. My rule of thumb has been to drop properties that have complicated liens from my consideration list. If I see tax liens or mechanics liens, I don’t bother with that property.

[UCGal]

I am not an expert on this – perhaps Adam can chime in…

I believe that 2nd mortgage and HELOC are wiped out IF it is the first mortgage holder that is doing the forclosing.

I believe tax liens, mechanics liens, HOA (if they have a lien placed), lis pendens, etc are all things the new owner gets stuck with.

I could be wrong.

I know the rules are a little different in the less common case where it is the 2nd mortgage holder (or HELOC holder) who is forclosing… I don’t think the first lienholder gets wiped out.

On tax liens – I’ve read different things – some suggest they get wiped out in CA, but perhaps not in other states since this is an auction OR judicial forclosure state. If it goes to auction, it’s wiped out. But I’m not absolutely certain on this. My rule of thumb has been to drop properties that have complicated liens from my consideration list. If I see tax liens or mechanics liens, I don’t bother with that property.

[UCGal]

I am not an expert on this – perhaps Adam can chime in…

I believe that 2nd mortgage and HELOC are wiped out IF it is the first mortgage holder that is doing the forclosing.

I believe tax liens, mechanics liens, HOA (if they have a lien placed), lis pendens, etc are all things the new owner gets stuck with.

I could be wrong.

I know the rules are a little different in the less common case where it is the 2nd mortgage holder (or HELOC holder) who is forclosing… I don’t think the first lienholder gets wiped out.

On tax liens – I’ve read different things – some suggest they get wiped out in CA, but perhaps not in other states since this is an auction OR judicial forclosure state. If it goes to auction, it’s wiped out. But I’m not absolutely certain on this. My rule of thumb has been to drop properties that have complicated liens from my consideration list. If I see tax liens or mechanics liens, I don’t bother with that property.

[UCGal]

I am not an expert on this – perhaps Adam can chime in…

I believe that 2nd mortgage and HELOC are wiped out IF it is the first mortgage holder that is doing the forclosing.

I believe tax liens, mechanics liens, HOA (if they have a lien placed), lis pendens, etc are all things the new owner gets stuck with.

I could be wrong.

I know the rules are a little different in the less common case where it is the 2nd mortgage holder (or HELOC holder) who is forclosing… I don’t think the first lienholder gets wiped out.

On tax liens – I’ve read different things – some suggest they get wiped out in CA, but perhaps not in other states since this is an auction OR judicial forclosure state. If it goes to auction, it’s wiped out. But I’m not absolutely certain on this. My rule of thumb has been to drop properties that have complicated liens from my consideration list. If I see tax liens or mechanics liens, I don’t bother with that property.

[UCGal]

I am not an expert on this – perhaps Adam can chime in…

I believe that 2nd mortgage and HELOC are wiped out IF it is the first mortgage holder that is doing the forclosing.

I believe tax liens, mechanics liens, HOA (if they have a lien placed), lis pendens, etc are all things the new owner gets stuck with.

I could be wrong.

I know the rules are a little different in the less common case where it is the 2nd mortgage holder (or HELOC holder) who is forclosing… I don’t think the first lienholder gets wiped out.

On tax liens – I’ve read different things – some suggest they get wiped out in CA, but perhaps not in other states since this is an auction OR judicial forclosure state. If it goes to auction, it’s wiped out. But I’m not absolutely certain on this. My rule of thumb has been to drop properties that have complicated liens from my consideration list. If I see tax liens or mechanics liens, I don’t bother with that property.

[SD Realtor]

– 2nd mortgage – wiped out
– HELOC – wiped out
– Mechanics lien – not sure
– Tax lien – State is wiped. Property taxes are not. IRS liens are not but there is only a 120 day (I think) right of redemption.
– HOAs – wiped out
– anything I’ve missed

UC you got it… also if the tax liens are not a killer we have moved forward and just paid them off. Depends on how the margins look.

[SD Realtor]

– 2nd mortgage – wiped out
– HELOC – wiped out
– Mechanics lien – not sure
– Tax lien – State is wiped. Property taxes are not. IRS liens are not but there is only a 120 day (I think) right of redemption.
– HOAs – wiped out
– anything I’ve missed

UC you got it… also if the tax liens are not a killer we have moved forward and just paid them off. Depends on how the margins look.

[SD Realtor]

– 2nd mortgage – wiped out
– HELOC – wiped out
– Mechanics lien – not sure
– Tax lien – State is wiped. Property taxes are not. IRS liens are not but there is only a 120 day (I think) right of redemption.
– HOAs – wiped out
– anything I’ve missed

UC you got it… also if the tax liens are not a killer we have moved forward and just paid them off. Depends on how the margins look.

[SD Realtor]

– 2nd mortgage – wiped out
– HELOC – wiped out
– Mechanics lien – not sure
– Tax lien – State is wiped. Property taxes are not. IRS liens are not but there is only a 120 day (I think) right of redemption.
– HOAs – wiped out
– anything I’ve missed

UC you got it… also if the tax liens are not a killer we have moved forward and just paid them off. Depends on how the margins look.

[SD Realtor]

– 2nd mortgage – wiped out
– HELOC – wiped out
– Mechanics lien – not sure
– Tax lien – State is wiped. Property taxes are not. IRS liens are not but there is only a 120 day (I think) right of redemption.
– HOAs – wiped out
– anything I’ve missed

UC you got it… also if the tax liens are not a killer we have moved forward and just paid them off. Depends on how the margins look.

[Eugene]

Unless the 2nd mortgage is the one doing foreclosing …

[Eugene]

Unless the 2nd mortgage is the one doing foreclosing …

[Eugene]

Unless the 2nd mortgage is the one doing foreclosing …

[Eugene]

Unless the 2nd mortgage is the one doing foreclosing …

[Author]

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