Have you ever encountered a pre-foreclosure property that has had a lien or liens removed via the property title that made too m
Submitted by JoelSaber on Wed, 04/16/2008 - 12:31pm.
Have you ever encountered a pre-foreclosure property that has had a lien or liens removed via the property title that made too much of an encumberance that would effect its purchase at the auction?Example: a town home with an association dues debt of $3800(accelerated amount) plus two mortgages equaling over $91,000.00. Remove one mortgage and you have $40,000.00.I’m from Minnesota.
Comments:
Hi Joel,
I’m not sure what you mean by “liens removed via the property title”. Many pre-foreclosures are over encumbered and are not worth buying until auction. At foreclosure auction junior liens are typically wiped out (laws do vary by state), which can often make up enough difference to make the property worth buying. Just be sure you know the seniority (1st, 2nd, etc) of the lien or mortgage that is going to auction before you bid.
ForeclosureRadar.co,m
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