A key component when purchasing a property at a Trustee Sale (or any sale for that matter) is to research the chain of title. You can typically purchase a '"limited title report" for $80.00 to $110.00.
There are two main reasons why you need the title history. First, you need to be sure the foreclosing lien holder is in first position. Second, you want to verify that there aren't any IRS, property tax or mechanic liens on the home.
Keep in mind we're buying a "lien" vs a "property". Not doing the proper research could cause us to buy all "liens" without our knowledge and drastically increase our liabilities and responsibilities.
IRS liens are very rare but they do happen. The IRS has redemption rights meaning they can seize the property within 120 days of being notified of the Trustee Sale. Notified is the key word here as the redemption period doesn't start until the notification to the IRS.
Another lien to consider is the mechanics lien. After verifying this type of lien, your next step will be finding the lien holder then try to negotiate a settlement. Contacting an attorney might be wise, otherwise consider passing on the home.
Arizona State property tax liens are almost always present on a property that is going to foreclosure. Although these liens do need to be paid by the winning bidder at the Trustee Sale, in Arizona, property taxes are relatively inexpensive so this lien typically doesn't hurt the investor's profit margin.
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.
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
There are two main reasons why you need the title history. First, you need to be sure the foreclosing lien holder is in first position. Second, you want to verify that there aren't any IRS, property tax or mechanic liens on the home.
Keep in mind we're buying a "lien" vs a "property". Not doing the proper research could cause us to buy all "liens" without our knowledge and drastically increase our liabilities and responsibilities.
IRS liens are very rare but they do happen. The IRS has redemption rights meaning they can seize the property within 120 days of being notified of the Trustee Sale. Notified is the key word here as the redemption period doesn't start until the notification to the IRS.
Another lien to consider is the mechanics lien. After verifying this type of lien, your next step will be finding the lien holder then try to negotiate a settlement. Contacting an attorney might be wise, otherwise consider passing on the home.
Arizona State property tax liens are almost always present on a property that is going to foreclosure. Although these liens do need to be paid by the winning bidder at the Trustee Sale, in Arizona, property taxes are relatively inexpensive so this lien typically doesn't hurt the investor's profit margin.
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.
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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