Back Taxes / Mortgage issues

[Kevin K.]

I'm looking to schedule a viewing of a house that appears to be a pretty good deal.  Asking 57,600 on it, 1700 sq ft, in an area that has similar houses going for 240k and up. Since I'm new to this industry, and being the usual cynic, I'm wondering if there is a possibility of any outstanding debt that would have to be paid on a property outside of the asking price.

i.e. is there a potential for backtaxes? does the new homeowner have to assume the responsibilities to those unpaid debts? Secondly, is it a possibility for a previous owner to simply abandon the house with an enormous balance remaining on their loan, which the bank then carries over to the new owner?

[Wayne Brooks]

You need some help, either an agent or an attorney.  Any purchase should be free and clear of existing/past debts.  You will need to do a title search, and get title insurance.  If it's listed, and this is a short sale, the listing price may have no relation to what the bank is willing to accept.