PLANNING ON SELLING A PROPERTY THAT WAS BOUGHT THROUGH A FORECLOSURE AUCTION?
DON’T WAIT TO ORDER YOUR TITLE SEARCH.
Foreclosure properties are wrought with issues and it’s important to start cleaning title before you list. Because of the number of liens that survive a foreclosure auction, some of these issues can take several months to clear up. For example, code enforcement liens are not eliminated through a foreclosure auction. Most municipalities are willing to negotiate these liens if the problem is fixed; however, you have to get on the agenda for the next code enforcement hearing. Deadlines to get on the agenda can be several months out.
Also, Association liens may not be extinguished, and negotiated balances can take time. There may be liens that were not included in the original foreclosure, which would require a re-foreclosure or satisfaction of those liens. Foreclosure properties are not typical, and waiting until you receive a contract to clear these issues may not be in your best interest.