The Trustee Sale-Where Did All Those Liens Come From?
When you make an offer on a property, a home through the Multiple Listing Service or through a Trustee sale, it's always a good idea to review the chain of title. At a Trustee Sale you can purchase a "limited title report" for approximately $80 to $110.
There are two main reasons why you need the title history. First, you need to be sure the foreclosing lien holder is in first position. Second, you want to verify that there aren't any IRS, property tax or mechanic liens on the home.
When you purchase a home at the Trustee Sale, you are buying a lien, not a property. If you don't do your research, you could accidentally buy a second position lien in which case you will have bought an obligation to pay off any first position lien.
IRS liens are rarer but more important. Per the IRS redemption rights, it states the property can be seized 120 days of notification of the Trustee Sale. Note the redemption period starts upon IRS being notified.
Verifying liens can be somewhat tricky, especially mechanics liens. Once you verify the lien you will then have to locate the contractor and try to reach a settlement prior to bidding on the property. You also might consider the services of an attorney at this point. If this doesn't work or you feel uncomfortable, passing on the property might be your best option.
A home going to foreclosure almost always has State property tax liens. These liens usually don't hurt the profit margin of the investor. They also do not need to be paid up front at the time of the Trustee sale. This type of lien usually has less cost factors than the other types of liens.
Arizona Trustee Sales can be an exciting and rewarding experience. With a little time and effort on your part you will have a vast range of knowledge and experience to make purchasing at a Trustee Sale a profitable venture.
With the over-correcting of property prices due to the boom in 2005, buying Arizona Real Estate can be a fruitful experience. Arizona has some of the lowest prices per square foot in the nation.
There are two main reasons why you need the title history. First, you need to be sure the foreclosing lien holder is in first position. Second, you want to verify that there aren't any IRS, property tax or mechanic liens on the home.
When you purchase a home at the Trustee Sale, you are buying a lien, not a property. If you don't do your research, you could accidentally buy a second position lien in which case you will have bought an obligation to pay off any first position lien.
IRS liens are rarer but more important. Per the IRS redemption rights, it states the property can be seized 120 days of notification of the Trustee Sale. Note the redemption period starts upon IRS being notified.
Verifying liens can be somewhat tricky, especially mechanics liens. Once you verify the lien you will then have to locate the contractor and try to reach a settlement prior to bidding on the property. You also might consider the services of an attorney at this point. If this doesn't work or you feel uncomfortable, passing on the property might be your best option.
A home going to foreclosure almost always has State property tax liens. These liens usually don't hurt the profit margin of the investor. They also do not need to be paid up front at the time of the Trustee sale. This type of lien usually has less cost factors than the other types of liens.
Arizona Trustee Sales can be an exciting and rewarding experience. With a little time and effort on your part you will have a vast range of knowledge and experience to make purchasing at a Trustee Sale a profitable venture.
With the over-correcting of property prices due to the boom in 2005, buying Arizona Real Estate can be a fruitful experience. Arizona has some of the lowest prices per square foot in the nation.
About the Author:
See more information about buy az foreclosures by clicking the link: buy az foreclosures today.
Postingan
Posting Komentar