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Lance@tampa2enjoy.com
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Tampa Foreclosures & Liens – Buyers Beware
Published by Lance Mohr | Filed under Home Buying Tips
Although Tampa foreclosures present a very real buying opportunity there is risk involved especially for those unfamiliar with the local market. Learn how to avoid potential pitfalls with these timely Tampa foreclosure facts and tips.
1. Title Troubles. The Internet is filled with methods on how to delay foreclosure due to title problems; while that may not interest you as a buyer, the basic fact remains – many mortgage companies failed to properly document transfers and other essential information when packing/reselling loans. The resulting delay is used as a tactic to delay foreclosure for those in financial trouble but Tampa home buyers and others in the market for foreclosures should take note; foreclosed real estate could potentially contain title problems.
Tip: When purchasing foreclosed Tampa real estate, be sure to obtain both forms of title insurance. One protects the mortgage company and the other protects you as the buyer. Insist upon a reputable title insurance company. It may save you time and trouble in the long run.
2. Tax Troubles. Here is a little known fact of interest to those in the Tampa foreclosure market; some state and federal tax liens may impact your property purchase – specifically Federal income tax liens. Federal tax liens take precedent over all other forms of debt. Should the current home owner have a tax lien then it will attach itself to the property. Often it is only found during the title search and may impinge or negate the purchase of the property for the following reasons:
• The mortgage holder takes second position to the Federal tax lien and no longer wishes to complete the transaction.
• The foreclosed real estate is used to secure the lien and therefore could encumber the property – obviously negating the final transaction.
• The tax lien attaches to all future real estate purchased or acquired by the taxpayer effectively rendering them a credit pariah until the debt is repaid in full.
3. Timing Troubles. Tampa foreclosures can take time to purchase; everything from clearing the title to ridding the current occupants of the home can slow things down to a crawl. Worse, extended delays can create financing problems including loss of rate locks and other provisions. It is imperative to have an experienced real estate agent who has actually worked with local foreclosures to make sure the process stays on track.
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