New Property: What am I missing?

New Property: What am I missing?

Rental Property Investor · Jacksonville Beach, FL · Member since 2016 · 97 posts · 108 votes

Hi BP! I recently bought my second flip through the Duval RealForeclose website in Jacksonville, FL. I did the title search and it appeared clean, and managed to purchase the property with cash in the foreclosure sale, with basically no competition.

It's been almost 2 weeks with the title and we've already gutted the place completely. This will turn out to be a great deal, even with a complete rehab.

My worry is, what if I missed something on the title search (I did it myself with guidance from a mentor who buys foreclosures all the time)? Can anyone who buys foreclosures with liens on them tell me how they got charged with the lien and at what point? I'm worried this deal is too good to be true, and that at some point someone is going to place a paper on the door saying I owe like $50,000. Tips from anyone who buys from foreclosure auctions and has had experience with other liens on the property would be very helpful.

Thanks!

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Chapel Hill, NC · Member since 2015 · 34 posts · 25 votes
9y

Instead of worrying that "someone is going to place a paper on the door saying I owe like $50,000", why don't you hire an atorney to do a Title Opinion (in NC it costs about $250-$350) which should give you a definitive answer.  Since it "will turn out to be a great deal, even with a complete rehab", the small amount of money spent on Title Opinion will give you  peace of mind and you can sleep better ;-)

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  • Chapel Hill, NC · Member since 2015 · 34 posts · 25 votes
    9y

    Instead of worrying that "someone is going to place a paper on the door saying I owe like $50,000", why don't you hire an atorney to do a Title Opinion (in NC it costs about $250-$350) which should give you a definitive answer.  Since it "will turn out to be a great deal, even with a complete rehab", the small amount of money spent on Title Opinion will give you  peace of mind and you can sleep better ;-)

  • Real Estate Agent · Wareham, MA · Member since 2013 · 112 posts · 67 votes
    9y
    Originally posted by @Sriv Nava:

    Instead of worrying that "someone is going to place a paper on the door saying I owe like $50,000", why don't you hire an atorney to do a Title Opinion (in NC it costs about $250-$350) which should give you a definitive answer.  Since it "will turn out to be a great deal, even with a complete rehab", the small amount of money spent on Title Opinion will give you  peace of mind and you can sleep better ;-)

    I totally agree with your above stated comments.   If someone is gonna play in this area/field and not consult with an Attorney or Title Company, in my humble opinion, they are PAYING FOR FAILURE.    A Title Search is on the top of the list.   $250 vs what?     

  • Real Estate Agent · Winston Salem, NC · Member since 2014 · 486 posts · 303 votes
    9y
    Yeah as Sriv Nava and Ronald Bourgeois just have a real estate attorney confirm.
  • Real Estate Broker · Jacksonville, FL · Member since 2012 · 31 posts · 5 votes
    9y
    I have bought a couple of properties on the Duval county website realforeclosure .com. I flipped those properties. I plan on buying more soon. When you buy at the foreclosure, it wipes out all liens except for IRS and county tax liens. If a lien wasn't recorded with the county against the property, then it doesn't exist. This is public information at the Duval county clerk of courts website. PM me if you have further questions.
  • Investor · Jacksonville, FL · Member since 2015 · 504 posts · 217 votes
    9y

    At minimum get a title search.... you are probably fine.  Duval has hundreds if post auction tax deed properties you can buy over the counter from the tax deed office for base tax.. p.m. me, I will tell you where to go direct , no middle man..no Scammy assignment no wholesale crap...direct from tax deed office 

  • Rental Property Investor · Jacksonville Beach, FL · Member since 2016 · 97 posts · 108 votes
    9y

    Thank You @Chudi A. That is helpful. I checked for IRS and county tax liens before purchasing, and was told the same thing by my mentor, but it's helpful coming from someone else doing the same thing.

  • Paul AmegatcherPro Member
    Rental Property Investor · Brookville, OH · Member since 2016 · 488 posts · 363 votes
    9y
    Originally posted by @Thea Linkfield:

    Thank You @Chudi A. That is helpful. I checked for IRS and county tax liens before purchasing, and was told the same thing by my mentor, but it's helpful coming from someone else doing the same thing.

    Title searches are a cheap insurance compared to missing something critical. Unless you are trained as an title abstractor I will pay for the search until you know what you are doing.  I echo the advice above. A title search in my area can be done for less than $200. 

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