Foreclosure Deed
I was researching a property and ran across this term. I assume that is the the deed that was given to the person who bought the property at auction. IS this kind of deed risky? In other words, it is not a warrenty deed, so is it possible that their could be more outstanding liens on the property or does a forclosure wipe out all liens once the property is sold at auction?
Any help would be appreciated.
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My guess is that you are correct in that this deed is given to the buyer who bought the property at the sheriff or trustee sale.
This deed is risky as it doesn't necessarily provide clear title.
You need to obtain a title search on any property you are wanting to bid at. From there you need to find the one that is foreclosing. All senior liens (recorded prior) are going to stick with the property. All junior liens (recorded after) will be wiped off ONLY if they have been given proper service from the courts.
If there is a 2nd mortgage, for example, out there and they were never notified that the 1st is foreclosing, that mortgage is not wiped out.
Buying real estate is all about two words: Due Dilegence
Thank you for your response myfrogger. Looks like I need to get a title search of my own on this one to reveal what liens are still there.......
Thanks again
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