Practice Area:Real Estate
Description:Q. When a property is auctioned by the Orange County Court, does the buyer get a grace period before taking possession legally of the property, without being liable for any liens, etc? A. There is no grace period when buying property at an auction. You take it at your own risk. I have met with many buyers who didn’t conduct property research and ended up with a property foreclosed on by the HOA, or with surviving liens. When buying a foreclosure property, you want to make sure the first and superior mortgage is the one that is foreclosing. You also want to make sure you are aware of the liens that will survive this foreclosure. For example, IRS liens, HOA liens, taxes, and code enforcement liens do not get wiped out in a foreclosure. Also, if the foreclosure was done incorrectly, then the court may cancel the entire foreclosure and take the property back. In these instances they typically return your money.