My assessor's records show that CitiFinancial owns a house from foreclosure, why did the realtor say.?
Question:
What does this mean? Should I be worried? What will he gain as commission for showing me this house that is owned by a bank?
The house also sold for 36k in '04, now the asking price is 12k.
Who owns the property has no impact on his commission. You can ask for details as to why they had title problems but I'd guess that if the previous owner had financial problems then there may have been one or more liens on the property that had to be cleared before they could sell it.
You should be concerned ONLY if the title issue is still unresolved.
In order to get a clear title the bank would have had to pay any back property taxes, liens placed by contractors, etc. Sometimes it takes a while to find all of that info & get it cleared up.
Your realtor will most likely get the same 2 or 3 percent commission that he would on any other house.
With the drastic reduction of the asking price of this house over what it most likely foreclosed at, I would be VERY concerned with the condition of the house. If you are considering purchasing it be sure to have a full inspection done.
Don't be worried, when you close the attorney will do a title search and make sure that the title is free and clear. If it is not, they will let you know.
The commission is paid by the bank, they made their money off the first owners, mainly in interest, so they can pay the commission, no problem. The 12k is what was left on the loan, all the bank wants to get back! If it is in halfway decent shape it would be a great flipper, or rental. Pay your money to have it inspected, though they will be selling it "as is", just to make sure the foundation hasn't cracked, etc. It should only be about 300.
Good luck, could be a fun find!
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