Bidding at Sherriff's auction
I live in Ohio where they list the Sherrif's auction's in the local paper on friday's and hold the sale on Friday's as well. I have bid on 2 at auction and won one. It is my understanding that an appraiser does a drive by appraisal and the bidding starts at 2/3 of that, and depending on what the lender needs, there may be some deals here. I would like to buy houses this way and sell them retail on my own, offering L/O, Land contract, Taking back and selling a mortgage, Conventional or CASH, but need to know specifically which liens are cancelled by the sale. I know that a 2nd, and or 3rd is wiped out, but what about mechanics liens, IRS liens, State Tax liens, County property tax liens etc...? Anything else to keep an eye out for and where do I find out about the specific liens? Title insurance, Courthouse records?
Thanks for the short course. 
[addsig]
Loanwizard,
To the best of my knowledge, here is the scoop on what to watch out for...
1. IRS Liens - IRS has up to 120 days to redeem the property after foreclosure sale. (Title search should find this, but the foreclosing attorney should notify the IRS 25 days before the sale. You can try and get a release prior to sale). If you don't get a release and still buy the property, don't make improvements until the 120 days is up. I wouldn't want my money sitting around this long waiting.... too many money seeds not growing into big money trees!!!
2. County Property Taxes - are tied to the property. I typically stop by the local Tax Commissioner's office and check (some counties are on-line in Georgia now). Most of the time the lender pays these to protect their interest, but always check!!
3. Unpaid Water/Sewer/Sanitation Fees - Some jurisdictions consider these like County Taxes, but Georgia did away with this.
4. Senior Encumberances - Once a property reaches the Courthouse Steps all junior liens (2nd's, 3rd's, etc.) fall off... (that is why you have a good amount of power negotiating with these in a short sale situation). But keep in mind, if a junior lien is foreclosing then the senior encumbrance is not cleared. (You will find this out in your Title Search)
Everything else if WIPED OUT by the foreclosure.
One last tidbit... Georgia is NOT a Right of Redemption State... so once it is sold at the Steps the homeowner CANNOT get it back. You will have to check out the law in Ohio.
Foreclosures is a very lucrative way to go... but DUE DILIGENCE is a must if you choose this route!!
Happy Hunting!!!! <IMG SRC="images/forum/smilies/icon_cool.gif"> [ Edited by StaceyWyatt on Date 04/13/2003 ]