buying a foreclosed home

[steffb503]

What is the name of your state (only U.S. law)? VT
Is there anything I should be careful of when buying a foreclosed home? I hear horror stories of thinking you are buying from bank "A" but in reality bank "B" owns it because bank "A" sold the mortgage to bank "C" then bank "C" bundled mortgages and sold them to bank "B".
Or the bank robo-signed and they do not even know where the original paper is?
Is there a way to be certain that the bank you are buying from hold the original mortgage?

Thanks
Steff

 

[Ohiogal]

What is the name of your state (only U.S. law)? VT
Is there anything I should be careful of when buying a foreclosed home? I hear horror stories of thinking you are buying from bank "A" but in reality bank "B" owns it because bank "A" sold the mortgage to bank "C" then bank "C" bundled mortgages and sold them to bank "B".
Or the bank robo-signed and they do not even know where the original paper is?
Is there a way to be certain that the bank you are buying from hold the original mortgage?

Thanks
Steff

TITLE INSURANCE. And it doesn't matter so much who holds the mortgage as who is on the deed.

 

[robinmathews]

Reply- Buying a foreclosed home

Well, If you have seen so many issues on this property then why are you thinking of buying this foreclosed home? I don't think it it beneficial for you.

 

[FlyingRon]

As pointed out, I wouldn't accept a gift of property from my sainted aunt without owner's title insurance.

I assume we are talking about property that already has been through a foreclosure sale and the bank is now the owner of (i.e., REO).
In addition to title insurance (nothing says that there was some older defect in title than just what happened in the foreclosure), the second big risk is that banks typically "know nothing" about the property and sell it as-is without any representations at all. it's best to do the BEST due diligence you can with a good inspection and appraisal contingencies.