Posted on: 08th Feb, 2010 12:43 pm
I am interested in placing a cash offer on a bank owned (Fannie Mae) property, but the property has about $44,000 of liens (two mortgage liens and one tax lien). I am considering submitting an offer contingent on there being a clear title at close. Do bank owned sellers typically pay off liens that are attached to the property or do they typically only sell properties if the buyer is willing to assume all responsibility for paying the liens? If seller can not present clear title at close, can the cash sale transaction still be completed through a title company?
Hi,
As far as I'm aware of, bank owned real estate properties are sold in "as is" condition. It means if there's any lien on the property, the buyer has to accept that. However, the mortgage liens and the tax liens need to be paid first when the property is sold. Thus, I think you need to talk to the bank and ask them if the mortgage and the tax liens will be paid off with the proceeds of the sale or if you need to buy the property along with those liens.
As far as I'm aware of, bank owned real estate properties are sold in "as is" condition. It means if there's any lien on the property, the buyer has to accept that. However, the mortgage liens and the tax liens need to be paid first when the property is sold. Thus, I think you need to talk to the bank and ask them if the mortgage and the tax liens will be paid off with the proceeds of the sale or if you need to buy the property along with those liens.
"as is" has nothing to do with title - it's all about the condition of the property. when a home is sold (it doesn't matter who the owner is), all liens are to be released. if you think it wise to take title to a property that has existing liens that won't be released, then your wisdom is very shaky. you want a warranty deed and you want clear title when you purchase a home. anything else is not reasonable.
