Foreclosures Are Low Cost, But Watch Out

Most of the the time, the mortgage firm will come away from the public sale with the deed to the house–but in some circumstances an outside purchaser might win the bid and buy the property. Whoever efficiently bids on and purchases the house will also purchase whatever liens that might be connected to the property. In different words, if there are again taxes owed against the property, the new purchaser will now have the obligation to pay these again taxes and some other liens in opposition to the property. If a roofing contractor has placed a lien on the property for unpaid work, the new owner may have the duty to pay that invoice.

buying a foreclosure

Prior to foreclosure, the owner of a home might have taken out a second mortgage or a home equity line of credit —forms of credit that use the home as collateral. If the primary mortgage lender …

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