OfflineIf I sell a REO property to my cash buyer are they responsible for the outstanding property taxes and liens?
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REO's and Buyers responsibility
Posted on: Thu, 11/22/2012 - 19:59
If I sell a REO property to my cash buyer are they responsible for the outstanding property taxes and liens?
Any property that you or your buyer buys, regardless of the seller, it is the responsibility of the buyer to do their due diligence to make sure no liens are present on the property. In most cases if an REO is the Seller there will not be any liens left on the parcel because the foreclosure process wipes most liens off of a property. However it is buyer beware make sure you and or your buyer do your due diligence. In most cases simple preliminary title work will catch any potential lien issues.
Hi Demetrius,
I agree with Dan here. Also remember that on a REO deal 99% of the time you will have to do a Double Close, so that means you will be the first buyer and your purchase should cover and pay off any and all liens. Then when you resell to your buyer they will already have it free and clear from you.
Good Luck,
Shah