The Trustee Sale-And We Thought We Were Getting A Great Deal!
A key component when purchasing a property at a Trustee Sale (or any sale for that matter) is to research the chain of title. You can typically purchase a ‘”limited title report” for $80.00 to $110.00.
The purpose of this title report is to ensure several things. One, we want to confirm that the foreclosing lender is in first position and secondly are there any property tax, mechanic or IRS liens attached to the property.
Trustee Sales require no emotional feelings. One way to look at it, is you’re buying the liens on the home, not the home itself. If there is a lien on the property you are not aware of, and have the winning bid, you will be responsible for all liens tied to the property.
IRS liens have redemption rights. Although they are not as common as the other liens mentioned, they do exist. The IRS can seize the property 120 days of notification of the Trustee Sale. It is important to note the word “notified” and not “after a winning bid”. The IRS could actually seize the property within a few days after a purchase has taken place at the Trustee Sale.
Mechanics liens can get a little tricky with verifying if they are actually valid liens and tracking down the lien holder to see if a settlement can be reached. You may want to contact an attorney otherwise it might be in your best interests to pass on the property.
The less threatening and most common type of liens are property tax liens. These liens are almost always present on foreclosure properties. The property tax lien usually does not affect the buyer’s profit margin. They also do not have to be paid at the Trustee Sale.
Homeowners, investors and the like can have a great experience and profit at Trustee Sales in Arizona . Winning the bid at a Trustee Sale builds your confidence knowing you gathered all the proper information prior to the home sale.
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.
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