Beginner Foreclosure/rehab Questions
I have made contact with a Trustee firm that purchases homes at the auction and re-sells to investors. I plan to use a hard money source and would like to buy and re-sell or lease purchase these properties.
Some of these properties look to have a fair amount of equity left and may need some rehab. I'm trying to figure acquisition costs and develop at least 3 exit strategies.
My specific questions are as follows:
1) Will a title company property search show any secondary liens, backtaxes or other issues that would need to be resolved?
2) If there were issues (mechanic liens, back taxes, etc) how hard generally speaking are they to resolve, for example, if there are bax-taxes owed, how would these be handled.
3) According to the trustee...
"The property is conveyed through a special warranty deed, just transferring with a deed, promissory note, & deed of trust to help with the eventual sale or refinancing rules"
what exactly does this mean?
4) Maybee the last question answers this one, but do I have to have a title company do anything here? Would I have to figure title company fees for title insurance and anything else in my acquisiton costs, or would I only need to use a title company when I re-sell?
All answers, advice and input are greatly appreciated. I'm sure I'll have more.
[addsig]
In some jurisdictions, a special waranty deed is also known as a Quit Claim Deed.
What you are proposing to do will require a good bit of due diligence on your part, and not an acquisition technique for all beginners.
If you are going to purchase in this manner, make sure that your contract is contingent upon a satisfactory review of title by your attorney.
Be prepared to walk away from some of these.....