Are there any hidden cost in buying a home in a foreclosure sale? The answer, is yes, you need to be very careful before you bid at a foreclosure sale to purchase a purchase the property. Some of the hidden cost or liens as it may be is if it’s a condominium or in a homeowner’s association. If you’re a third party bid, you’ll be responsible for paying any back due homeowners association liens, or, undo amounts that are paid. So that is one area that you have the hidden cost. I’ve seen any number of times when people would buy the property at a foreclosure sale. Whenever the homeowner’s association or condominium association is foreclosing on their assessments. And it looks like a really good deal, because they get this, you know, expensive property and they only have to pay a few thousand dollars whenever the property’s worth two or $300,000. While you take it subject to any superior mortgages, meaning mortgages or liens that were filed before, the foreclosure action or whatever the lien or, second mortgage that was being foreclosed upon.
And so when you take title to the property, it’ll be subject to that and your interest can be foreclosed out by the first mortgage holder. And, or if there may even be a federal tax lie or any number of lie that can be attached to that. So,you need to do a title search on the property to make sure that there, that there are no prior mortgages and it’s hard to tell whether or not there’s any back due homeowners association, liens or condominium liens, unless they filed it. And then there’s usually even more on top of that. So, if you have any questions, you can give me a call at (727) 847-2288.