All Forum Posts by: David Zamarron

When someone has a state tax lien against them or a business they own, the lien will attach to every parcel in their name regardless of the amount of the lien.  So if they have a large portfolio, you would see it in many places.  In the end, the state will get their money.

Offer to sign a Hold Harmless agreement.

Seeking NPN in the Central Michigan Area. Vacant or occupied. All price ranges considered.

Seeking private financing for Buy-Fix-Sell strategy. Average 65% LTV. Maximum 24 month term. Central Michigan Area.

First, I would drive by the property to determine if the property is indeed occupied. It is not unusual for the auction companies to deem the properties as occupied as they avoid liability and costs by using this policy.  If it is occupied and you are the successful bidder, you inherit the occupants as tenants and will have to evict them.  Check the laws in your state. You may find that the house has been long since been vacated.  Still do not enter the property but you will not have to evict any occupants.

You will probably find most REO sellers will issues owner's title insurance with a few exceptions which will show the status of these lien items. Some sellers, HUD & VRM (Vendor Resource Management), on behalf of the VA and USDA, do not furnish owner's title insurance. In my experience, I've never had any REO sellers pass title with undischarged liens in place however, in all cases, NEVER buyer a property without title insurance whether the seller or you pay for it.

In my experience, the only liens you may inherit as those such as utility related liens from unpaid water/sewer bills, etc. Since the property is occupied, these bills cannot be settled and the likelihood the occupants won't pay them upon vacating is high.  I haven't seen where mortgage liens weren't paid off in advance or at closing.

I've brokered many houses in the area.  I would urge caution in building a spec house as there are many properties available at prices well below reproduction cost.  Additionally, many sellers in this retirement/second home market own their properties free & clear of mortgages and have room to market and negotiate aggressively.

Hi Julia: Thanks for reaching out. I'm still interested in NPN. If you have a tape/list, please forward and I'll filter it down by location and we'll go from there.

In my experience, the government sponsored REO's, Homesteps/Freddie Mac, HUD, Fannie Mae/Homepath always have inspection contingencies in their contracts. Beware of Auction sales, like Auction.com that have lengthy contracts that most often have no inspection contingency.