What Else Comes with the House?
Buyer beware at foreclosure auctions and tax sales. Before you bid on a foreclosed property at auction, make sure you know what debts are part of the package. Pay your title
company to conduct a title search to determine if any liens or fees are connected to the property. You may discover that you will be taking on the previous owner’s senior liens (or first mortgages); junior liens (second mortgages or additional claims against the property), or tax liens (unpaid property taxes), says Ralph R. Roberts and Joe Kraynak in their book Foreclosure Investing for Dummies (Wiley, 2007). What that means for you, is that you may end up having to pay for the past owner’s debts when you sell the property later. Sometimes the lender who is selling the property has a title company performing the closing, but that title company (who is more loyal to that lender’s steady stream of foreclosure business than to you) may not always be giving you the cleanest title. It is well worth the money to have your own title company double check the title as well.
Call Realtor, Nathan Walldorf, with Herman Walldorf & Co. Inc. if you have any questions about buying a Chattanooga home on auction or in general. He’d be happy to help you. 423-544-7700.
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