Well, that’s the trouble with buying foreclosures… dealing with all of the issues that come with it. To answer your first questions regarding the liens, you can do a couple of things. Namely, you want to research the title. You can do so by hiring a company to perform a title search (probably the most thorough option) or, if you are so inclined, you can research the title on your own. Depending on what county the property is located, you may be able to do a search online of the official records. Lienholders record their liens. That said, if you are unfamiliar with this process, have a professional research the title. Now, you mention two other problems – inspection and a loan. You likely won’t even be able to get onto the property before the sale. You can look at what you can see, but that property belongs to the owner of the property until it’s sold and title passes. So, there's always a chance you walk into a "gutted" home or one with severe problems. Finally, you are unlikely to find a commercial bank that will be willing to give you the case to buy a foreclosed property. I suppose it’s possible to find private money, but keep in mind that when you make that bid, you better have that cash. Do some research on the clerk of court's website in the county where the property is located and become familiar with the auction procedures. Real estate can be a great investment, but, in my experience, buying foreclosures can be problematic. Do your homework and put in the leg work. And, just as a word of warning in Florida, beware of HOA liens… the last thing you need is to buy a property only to lose it when the HOA forecloses on it.
Answered on Nov 25th, 2013 at 4:06 PM