When you are into real estate investing, an important factor to success is to find quality homes for sale. Since the house I bought will be with me for at least half a decade, I was not too worried to see four more houses on the block in foreclosure I believe five years is ample time for prices to drop and come back up again, guaranteeing that my investment is safe.
These liens remain intact until the money is paid which means that you will have to pay off the liens on the foreclosed property you are buying, even though it wasn’t your water heater the plumber repaired, and even though you’re not the one who didn’t pay the property taxes the last few years.
Banks and other institutional lenders may bid in the amount of the owed debt at the sale but there are a number of other factors that may influence the bid, and if no other buyers step forward the lender receives title to the real property in return.
Normally a single sheet of paper that states exactly what they are willing to do. Be prepared to pay earnest money, most foreclosures required it. The initial counter offer will give you a good idea of where they want to be. Sometimes they will come down further, but the majority of the time they tend to stick close to the counter offer.
However, they can not just automatically put a lien on any other home or property, or garnish wages; the lender would have to take the homeowners back to court, hire local attorneys to file the lawsuit paperwork, get the judgment from the court, and try to have it enforced in the county to where the homeowners have relocated after moving out of the foreclosed home.