Need Info On Forclosure
When property goes to auction and your bid is accepted is the liens that were on it wiped out or can you get stuck with them?
I have heard they get wiped out and i have heard that you can get stuck with them if there isn't enough to pay them off.
please let me know what the real deal is or if it's different in each state.
Rd,
I heard that the junior liens would be wiped out, and if there is not enough money to cover the 1rst lien they(creditor) could file for a defiency judgment for the rest of the money from the debtor or buyer if buyer signed that he would be responsibe.Buyer would definitely have to sign somthing to this effect in order to hold him responsible.
I'm also new to the rei, if anyone out there can correct me or elaborate please do I'm always interested in learning.
Location makes a difference. In GA, junior liens are wiped out. It is not that way in all states. If the bidding surpasses the amount owed on the primary, the excess goes to the 2nd, then third and lastly, if anyt thing is left, to the home owner.[ Edited by jllaco on Date 08/09/2003 ]
Thank you for the info, i think i will have to go to the court house on monday to ask them a few questions
I would be leary if I'm basing an investment decision on what "I've heard" or what "I believe" to be the case. Generally speaking a foreclosure is process that seeks to "foreclose" or wipe out junior liens. You will need to research what liens, in your state, are considered junior (such as property taxes, etc). Foreclosures differ from state to state. Learn what your states requirements are and don't go by what you've "heard".