Questions On Courthouse Foreclosure Sales
Hello, i have a two part question. First being, have any of you ever purchased at a court house foreclosure, and then found out the previous owners are still in property? what is the new owners rights to remove them. must you evict like a tennant, or will police remove them on the spot. Second question. Buying at a foreclosure sale, can you trust all junior liens of any type to be wiped out other then a tax or irs lien if any? Thank you.
I have only purchased one home at the sheriff's sale and it was vacant. I would imagine that you would want to use some sort of discression in moving the prevoius homeowners out. Under Iowa Law the purchase is entitled to immediate deed and immediate possession. The prevoius homeowners would be trespassing.
As far as the quality of title after the sale, you should check with an attorney. In Iowa I have no worries about having clear title.
GOOD LUCK
You'll have to consult your state laws or an investor from your state that knows. In some states the occupants are treated like tenants and you are entitled to rent from the time you get the deed to the time they vacate. You may be allowed to evict immediately, then again you might not. Also, if the occupants are tenants (the auctioned property was a rental), then other rules may apply.
All junior liens regardless of what type will be wiped off of the title by the foreclosure action (notice, I didn't say wiped out...just wiped off). This is why property tax liens often attach senior to all liens including mortgages and trust deeds. Find out what liens in your state attach in a senior position regardless of when they're recorded. All senior liens remain against the property after foreclosure.
IRS liens can be wiped off of title like any other subordinate lien if in a junior position, but the IRS has an automatic 120 day right of redemption. And IRS liens are general liens. That means they can attach to any real property of the defaulting owner. This is why you need to check out the owner and not just the chain of title to the property itself when doing your due diligence.
In Maryland the sale must be ratified by the court and takes about 45-60 days.You can't begin trying to evict until the sale is ratified. It can then take 30-90 days to get someone out. Hopefully they are not vindictive and destroy the www.property.I've had success aproaching owners after sale,explaining that someone was going to buy the house it just happened to be me,see if you can help with relocating or storage and try to buy the keys. Chances are they won't destroy if they can get cash and you shoe you understand and want to help.$200 even up to $1000 can be cheap insurance on your investment.