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04-12-2008 at 8:34 AM
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Random home buying Q

If you look at house where they're accepting bids and you ask if there are liens against the house, do they have to tell to you?

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04-12-2008 at 8:53 AM
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I would imagine they would have to. I think it has to be listed on the disclosures, actually.

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04-12-2008 at 8:59 AM
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That is why you want to make sure that you are working with a good real estate attorney, so they can look into that... as well as other title issues.  The real estate agent needs to disclose anything they know about. 

04-12-2008 at 9:05 AM
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We're not actually looking to buy so we aren't working with anyone. But my parents are, and I was looking for open houses for them, and came across a decent looking home that they're accepting bids on this weekend. I asked DH if he want to just go look but I know with foreclosed houses that are for auction (I assume that's what this is) there are all kinds of issues that can arise if you haven't done your homework, and was wondering how much of this they have to disclose. I would guess that if you ask they can't lie, right?

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04-12-2008 at 9:27 AM
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Yes, they may or may not know the issues with the house.  The previous owners are usually removed in a foreclosure and do not have a lot of contact with the bank. Once you have submitted the bid you can look into these issues and back out if something arises or you can have an attorney do a title check before submitting the bid. We have a friend who is doing this currently. 
04-12-2008 at 9:40 AM
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Yes, I believe they do. However, I had a buyer's agent withold VERY important info about her buyers that she knew about but "claimed ignorance" over.  Some realtors can be very, very dirty (but MOST are not!).


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04-12-2008 at 9:49 AM
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Yes they should tell you because they should be delivering a  clean and clear title to you. But you can have your realtor or attorney do a title search and you cna buy title insurance. So that way if there was an issue after you close and you get the insurance you aren't liable to pay it.
04-12-2008 at 4:08 PM
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I use to represent banks in home foreclosure sales back in 2001-02ish. We did not have to disclose if there was a lien or 2nd/3rd mortgage - it really is up to the bidder to have done their homework on a place.  That being said, if we did know of a lien, we would tell people if they asked, which they always did.

 

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