Posted by SteveA (FL) on May 01, 2000 at 11:14:02:
…so I wouldn’t have to go back as far. Sounds like I have some homework to do.
How to find out liens? - Posted by SteveA (FL)
Posted by SteveA (FL) on May 01, 2000 at 09:17:11:
Will a title search/report reveal ALL liens on a property? I’ve got a line on a pre-foreclosure that’s already gone to the attorney’s, but I want to know of all liens before making my offer. The owner’s are trying to sell it retail real quick before the floreclosure.
Thanks.
Tax lein from 1915 missed in title search, still accruing interest! - Posted by David Krulac
Posted by David Krulac on May 02, 2000 at 05:19:36:
My grandmother bought a piece of land and never built on it. When bought there was a 60 year title search done, pretty standard here. Kept the land for many years and then sells and buyer’s search reveals unpaid tax bill from 1915, still valid still accruing interest! So times you can’t search back far enough.
Another time the title search went back 60 years and prior to that there hadn’t been a trabsfer for many years, so they actually went back to the last deed prior to 60 years which was 1889 and found a title flaw where one of 4 heirs had not signed the 1889 deed. The title company wouldn’t issue title insurance and required a Quiet Title Action costing 6 months and $1,200 before they would insure title and have closing!
David Krulac
Re: How to find out liens? - Posted by IdahoRob
Posted by IdahoRob on May 02, 2000 at 02:52:18:
Hi Steve:
The home you said is 3 years old— to have any value a couple things much have taken place
- A very large down payment was paid out when the house was first sold.
- Or you live in an area with very fast rising house values.
Most all mortgage payments for the first 10 years pay interest only on a mortgage. So paying on this mortgage for 3 years will not create any equity.
If the buyer paid $15,000 to $20,000 down on a $100,000 home then you have perhaps as much as 20% equity to capture-- However programs in home lending can be very low like .05%.
Holding cost of even 2 months will eat quickly into your profit. Plus the way you choose to market it for sale can eat another large chunk out of your profit.
Think we could help you more if you were to give more detail such as market value (not what the Real Estate Co has it listed at) but what will it sell for?
What will you buy it for? How long will you hold it before you can sell at your asking price? You hint that it will be sold at a discount. You need to make sure you know your market well --so you truely do get it at a discount.
When I was looking at preforclosures I most of the time looked for mortgages that had been seasoned 10 years or more, that way the 10 year time span created equity by small yearly increases in value, if the mortgage was in place for 15 years----this longer time gave some reduction off the mortgage.
But lets say I am missing something because I don’t have all the good details that you see in this deal. Just keep in mind----If you buy it right then you can sell it right. Let us all know how this plays out–by posting more on this deal as it developes.
I hope this will help
Rob Harris Idaho Rob
Not necessarily… - Posted by Ben (NJ)
Posted by Ben (NJ) on May 01, 2000 at 09:54:14:
you may have to be very specific with your title company. As a tax foreclosure attorney, for our foreclosure files, I specifically order a twenty year chain of title search (sometimes sixty years if there are unknown owners), a municipal tax and assessment search and an upper court judgment search which would turn up federal liens, state liens, bankruptcies, lis pendens and judgments. Also, since foreclosures take forever,at some later point in time I run a continuation search for “gap creditors” who may have slipped in between searches. Hope this helps.
Update - Posted by SteveA (FL)
Posted by SteveA (FL) on May 03, 2000 at 08:59:52:
More info; (I was evaluating this as a rental). The backpayments and attorney’s fees total $6500. The balance of the mortgage is $95K. The realtor said she would take her commission in a note (what commission!). Rental should draw $850 and payements (piti) are $724. House is relatively new so in good shape and already vacant.
I’d put up the $6500 and offer to take over the loan if there are no other liens. Probably has a FMV of $100+. Still checking on that.
Opinions?