Closing with a tax lien in Georgia

[Jennifer D.]

Would you close with a $63k lien on a $15k property in the Atlanta metro area?

We are under contract to buy the vacant property for $15,000.  It has an existing lien of $63,000, and the title is still under review with the title insurance company as to whether they will even insure the title.

Regardless of whether they will insure the title, I wonder whether we should back out.  

How does title insurance work?  What if, for instance, we spend $150,000 to build a house on the property?  Will the title insurance cover the $15k purchase price plus the $150k house should someone come calling on the lien?

Is there anything else we need to know?  

Thanks!

jennie

[Wayne Brooks]

@Jennifer D. Let’s back up a  bit....

Is this a REO? They are are typically sold free and clear.

What kind of liens are they?

Is someone knowledgeable telling you these liens are are still attached to the property Or are you just seeing them on a title search report? (Liens that are wiped out by “operation of law” don’t show up as “satisfied” or “released” although they are no longer attached)  Most liens would be wiped out by a foreclosure.

Your logic of offering $1000 doesn’t make sense.