Hi BP, I am looking at an online auction for a bank owned property. Title shows some minor city judgements on the property ($2K). It also shows a mortgage of $105k in 2015 then this mortgage was subject to ASSIGNMENT in 2018 and then MORTGAGE FORECLOSURE late last year. Is the buyer of the auction liable for the city liens / judgements and the mortgage? Or because you are buying it bank owned, the mortgage is solved in the auction? Thanks in advance.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
7y
The mortgage itself is the one that got foreclosed on, it no longer exist. The vast majority of reo's come with title insurance....the other liens either got wiped out at foreclosure or the bank pays them off. But, choose and pay for your own title insurance as many REO title policies don't cover "unrecorded" liens.