The Trustee Sale-Where Did All Those Liens Come From?

Securing a copy of the title history is very important before participating in a Trustee Sale. We call it the “chain of title” or “limited title report”. There is a minimal cost of approximately $100 to obtain this report.

The reason for obtaining a chain of title is to ensure several things. One, that the foreclosing lender is a first position lien holder. Secondly, are there any IRS liens, mechanic’s liens or Arizona property tax liens.

Trustee Sales require no emotional feelings. One way to look at it, is you’re buying the liens on the home, not the home itself. If there is a lien on the property you are not aware of, and have the winning bid, you will be responsible for all liens tied to the property.

IRS liens have redemption rights. Although they are not as common as the other liens mentioned, they do exist. The IRS can seize the property 120 days of notification of the Trustee Sale. It is important to note the word “notified” and not “after a winning bid”. The IRS could actually seize the property within a few days after a purchase has taken place at the Trustee Sale.

Verifying liens can be somewhat tricky, especially mechanics liens. Once you verify the lien you will then have to locate the contractor and try to reach a settlement prior to bidding on the property. You also might consider the services of an attorney at this point. If this doesn’t work or you feel uncomfortable, passing on the property might be your best option.

A home going to foreclosure almost always has State property tax liens. These liens usually don’t hurt the profit margin of the investor. They also do not need to be paid up front at the time of the Trustee sale. This type of lien usually has less cost factors than the other types of liens.

Arizona Trustee Sales can be an exciting and rewarding experience. With a little time and effort on your part you will have a vast range of knowledge and experience to make purchasing at a Trustee Sale a profitable venture.

The successful investor or bidder can have huge rewards by preparing themselves accordingly. Now is one of the best times to buy homes in Arizona real estate.

See more information about newresalehomes.com by clicking the link: newresalehomes.com today.