need guidance on foreclosure property i won
Hey everyone, I'm a new investor who recently purchased a property in IL without doing the due diligence part because I forgot to do it at the time. I've since gotten the title search done and have received the sale order, but I'm still waiting on getting the deed and getting it recorded. The issue now is that I'm not sure if I bid on a second mortgage or if there are multiple mortgages on the property. I've talked to one lawyer who looked over the title and taxes documents and said it's clear, but I don't fully understand what that means. I'm waiting for a response back from the lawyer, but I'm not sure if he knows much about this specific issue. The only thing I know for sure is that I have to pay back taxes of around $7,000, which I don't mind. I just want to make sure I'm not missing any other large amounts that I might have to pay. If someone could look over the documents and help me ease my nerves, I would be so thankful.
I'm trying to learn from my mistakes, including being able to read a title, getting all other information (liens, loans, taxes, etc.), fully researching before I buy a property, getting a lawyer to help in future bids, title insurance, and home insurance.
talked to a title insurance company they said my my title search is an abstract does that mean there might be vital info missing regards to more money i might have to pay ??
i have attached the title search
Quote from @Kasim Rashid:
Hey everyone, I'm a new investor who recently purchased a property in IL
@Kasim Rashid: an abstract of title means it's a list of the things that have happened to the property from a legal perspective. That is a good thing to know what affects title. I don't buy in Illinois and the format is a bit different than what I'm used to, but it appears that a couple of judgments from other properties are noted. I don't know if they affect title. It could be a cross collateralization or it could simply be for reference purposes. The question you want to ask whoever prepared the title report is, if you bid on the first loan or on the second loan and they will tell you. That is what you paid them for. The question you might ask is "What survived the foreclosure sale".
“It's clear" means there are no encumbrances on the title, but that is not consistent with having unpaid taxes. So, it is a bit confusing.
@Mike Hern Hi Mike thank you for getting back to me. i did ask the person (a realtor who was at the auction who told me about that stuff after i had placed my bid) who ran the title search but they just wanted to make money it seemed cus when i went to ask them they said they dont know how to read it lol or tell me if i bid on a 1st loan or 2nd loan which was i even asked for it from her.
how else can i know or should i run a title again thru a lawyer or title insurance company ?
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@Kasim Rashid
Based on what you provided it seems like you bought the foreclosure on the first
Now what is not on that report is any water sewer or utility liens or potential code violations which could attach to the property
I recommend before bidding at foreclosure to do your due diligence and home work
hi thank you for info
Quote from @Chris Seveney:
@Kasim Rashid
Based on what you provided it seems like you bought the foreclosure on the first
Now what is not on that report is any water sewer or utility liens or potential code violations which could attach to the property
I recommend before bidding at foreclosure to do your due diligence and home work
and yes moving forward i will do alot more research indeed
how can i find that information out about the sewer ir utility liens
Never rely upon a current owner search to determine the true status of a property’s title.
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@Kasim Rashid This “title search” doesn’t really tell you anything important.
The only documents pertaining to this property are 2 assignments of A mortgage, this year. It doesn’t even show the mtg foreclosure being filed.
It doesn’t even show When this mortgage was originated, or any other mtgs that may have been recorded, before or after the mtg being foreclosed on.
This is Not a complete title search, by any means.
As mentioned by @Tom Gimer, this property could have been Quit Claimed to the names searched recently, and the foreclosure is for a mtg obtained by the previous owner, with who knows how many liens/mtgs they may have had against them. Since the foreclosure, along with no recorded mtgs showed up supposedly by searching their names, I suspect this may be the case.
Quote from @Wayne Brooks:
@Kasim Rashid This “title search” doesn’t really tell you anything important.
The only documents pertaining to this property are 2 assignments of A mortgage, this year. It doesn’t even show the mtg foreclosure being filed.
It doesn’t even show When this mortgage was originated, or any other mtgs that may have been recorded, before or after the mtg being foreclosed on.
This is Not a complete title search, by any means.
As mentioned by @Tom Gimer, this property could have been Quit Claimed to the names searched recently, and the foreclosure is for a mtg obtained by the previous owner, with who knows how many liens/mtgs they may have had against them. Since the foreclosure, along with no recorded mtgs showed up supposedly by searching their names, I suspect this may be the case.
what do you suggest i do cus i really want to know if i own any more money
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Quote from @Kasim Rashid:Call a title company ask for a Title Insurance Commitment…may cost a couple hundred bucks.
Quote from @Wayne Brooks:
@Kasim Rashid This “title search” doesn’t really tell you anything important.
The only documents pertaining to this property are 2 assignments of A mortgage, this year. It doesn’t even show the mtg foreclosure being filed.
It doesn’t even show When this mortgage was originated, or any other mtgs that may have been recorded, before or after the mtg being foreclosed on.
This is Not a complete title search, by any means.
As mentioned by @Tom Gimer, this property could have been Quit Claimed to the names searched recently, and the foreclosure is for a mtg obtained by the previous owner, with who knows how many liens/mtgs they may have had against them. Since the foreclosure, along with no recorded mtgs showed up supposedly by searching their names, I suspect this may be the case.
what do you suggest i do cus i really want to know if i own any more money
@Kasim Rashid
In addition to the good advice from the others above, you need to speak to the Will County Treasurer about the property taxes. Looks like this property went to tax sale in Dec of 2023. Call the Treasurer's office this week and give them that Tax Lien Certificate ID in your images you've posted and go from there. Best of luck with it