Ohio Sheriff Sale
I'm looking to buy a property at Sheriff Sale in Ohio. The Taxes are paid up, the same bank has 3 liens on the property- 1st, 2nd , and a Line of Credit. I've veiwed the property and it is in good shape- someone (bank??) had the house prof winterized/shutoff correctly. The house is empty.
I'm paying to have a title search done which I don't have back yet, and I've done a search on-line with the helpful information provided in this website.
Questions:
1- If no other lien holders exist and I outbid the bank for the property, other than a last minute lien submission, are there any other watchouts for getting a clean deed?
2- If I pay less than the total amount of the liens from the bank (maybe they don't show up), am I responsible for "clearing" the banks lien?
3- In Ohio, is there any reason why I can not buy the property and sell it (with clean deed) within weeks? I saw postings talking about a "6 month holding period???"
4- If other lien holders "pop-up", except the IRS and Child Support, is there any reason to think they'll clear the lien without money? I can only hope.
Thanks!
I'm looking to buy a property at Sheriff Sale in Ohio. The Taxes are paid up, the same bank has 3 liens on the property- 1st, 2nd , and a Line of Credit. I've veiwed the property and it is in good shape- someone (bank??) had the house prof winterized/shutoff correctly. The house is empty.
I'm paying to have a title search done which I don't have back yet, and I've done a search on-line with the helpful information provided in this website.
Questions:
1- If no other lien holders exist and I outbid the bank for the property, other than a last minute lien submission, are there any other watchouts for getting a clean deed?
IF THE ONLY EXISTING LIENS ARE THE BANK AND THE PROPERTY TAXES, YOUR DEED SHOULD BE VERY CLEAN AFTER THE CONFIRMATION OF SALE. IN FRANKLIN COUNTY, THEY ISSUE A COMMITMENT FOR TITLE INSURANCE DURING THE FORECLOSURE PROCESS -- SO IF YOU ARE ULTRA CONCERNED ABOUT YOUR TITLE, THEN BUY THE INSURANCE WHEN YOUR DEED IS ISSUED.
2- If I pay less than the total amount of the liens from the bank (maybe they don't show up), am I responsible for "clearing" the banks lien?
NO. THEY ARE WIPED OUT AFTER THE SHERIFF'S SALE IF THOSE LIENS WERE LISTED AS DEFENDANTS IN THE FORECLOSURE SUIT. SINCE IT IS ALL THE SAME BANK, AND THAT BANK BROUGHT THE SUIT -- THE SHERIFF'S DEED WILL BE CLEAN.
3- In Ohio, is there any reason why I can not buy the property and sell it (with clean deed) within weeks? I saw postings talking about a "6 month holding period???"
NOT POSITIVE, BUT I BELIEVE THE 6 MONTH HOLDING PERIOD IS ONLY FOR PROPERTY TAX FORECLOSURES/TAX DEEDS. A FORECLOSURE FROM THE BANK IS ONLY SUBJECT TO REDEMPTION BY THE ORIGINAL OWNER THROUGH THE CONFIRMATION OF SALE. HOWEVER, THAT CONFIRMATION CAN TAKE QUITE SOME TIME DEPENDING ON THE LAWYERS INVOLVED. EXPECT AT LEAST 30-60 DAYS (IT CAN BE LONGER IF YOU DON'T DOG THEM ON IT AND THEY HAVE ALREADY GOTTEN THEIR MONEY).
4- If other lien holders "pop-up", except the IRS and Child Support, is there any reason to think they'll clear the lien without money? I can only hope.
CAN'T ANSWER THAT ONE. WOULD YOU CLEAR YOUR LIEN IF IT LOOKED LIKE YOU COULD EXTORT SOME MONEY OUT OF A TRANSFEREE? ALTHOUGH, I HAVE TO SAY THE TITLE INSURANCE SHOULD COVER YOU IN THAT CASE.
Thanks!
dciolek,
Thanks for helpin' a newbie! I really appreciate it!
You are very welcome. A good point I would like to make is that you seem to be asking ALL of the right questions -- and that is so important for someone starting out. Caution is ALWAYS appropriate.
Make sure you keep asking the right questions and looking for answers (instead of putting the blinders on). In the end and in many instances, the effort and over-caution will seem to be wasted -- but it only takes one bad deal to wipe out the capital you have set aside to start. Make sure you are doing deals (don't let fear of the unknown overcome you) -- but do them well informed.
Good luck!!!! My first Sheriff's auction went like a dream for me after it was all over, but while it was going on, it was a lot of worry. The end result encouraged me to move on to a short sale, which is going VERY well so far. I sent out 40 letters and got back 2 responses and have one deal live and kicking. I like that ratio. So keep learning...