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

When you make an offer on a property, a home through the Multiple Listing Service or through a Trustee sale, it’s always a good idea to review the chain of title. At a Trustee Sale you can purchase a “limited title report” for approximately $80 to $110.

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 are rarer but more important. Per the IRS redemption rights, it states the property can be seized 120 days of notification of the Trustee Sale. Note the redemption period starts upon IRS being notified.

Mechanics liens can get a little tricky with verifying if they are actually valid liens and tracking down the lien holder to see if a settlement can be reached. You may want to contact an attorney otherwise it might be in your best interests to pass on the property.

The less threatening and most common type of liens are property tax liens. These liens are almost always present on foreclosure properties. The property tax lien usually does not affect the buyer’s profit margin. They also do not have to be paid at the Trustee Sale.

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.

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