I am currently looking to make an offcer on an REO… My question is, if there additional liens on property eg. 2mtg, mechanical liens ect… are these liens wiped out when the Bank takes property from owner… I would like to throw an offer out to the bank, but am real cautious about any additonal liens that may be on the property…Experienced inverstors, please advise…
If you are buying from the bank you needn’t worry about other liens the bank would have to convey clean title to you.
Ok sounds good. does that mean taxes and mechanical liens
not taxes, taxes in most states take a priority in position even over a first mortgage. all other liens (2nd mortgage, credit liens, etc) are voided…that’s the purpose of a foreclosure, to essentially “clean” the property
Well typically to transfer clean title back to the bank, they would have to bring the taxes current. Then they also, as the title owners, have to pay the taxes for the time that they own it.