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 purpose of this title report is to ensure several things. One, we want to confirm that the foreclosing lender is in first position and secondly are there any property tax, mechanic or IRS liens attached to the property.

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.

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.

Trustee Sales in Arizona can help investors and homeowners gets great prices on homes in the Phoenix area but you need to do a little homework regarding the value of the property and the liens being purchased and acquired by the successful bidder.

By doing your research correctly and timely can reap amazing benefits to the investor. Arizona currently has some of the best bargains in the country for the savvy investor

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This entry was posted on Monday, October 26th, 2009 at 4:52 am and is filed under Mortgage Loan Foreclosures. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.