Well, good afternoon, everybody.

My name is Chris Berger and it’s time for a Berger Point.

You know, we talked about buying a foreclosure and what are the pitfalls?

Well, the major pitfall is that if you go in and purchase a home that’s previously owned by the bank or an auction house, one thing you must be clear about that there are no lien holders aside from the original mortgage. on the house.

So for example, the house was foreclosed on for 375,000.

The bank puts their fees on it, which might be 20,000.

So now we’re up to 395.

So at this point, if you bid on a home or pay for a home, the 395 should be it.

There should be no further liens on it from any contractors in the past.

There shouldn’t be a second loan on there. or a second mortgage on there, it should be free and clear once that title is paid for in full at the 395.

So that’s the value of something called title insurance.

And that’s why here in New York, the buyer is responsible for purchasing title insurance for that property.

And what will happen is that the title insurance company will research all the background of the house, and guarantee to you that the property will be free and clear.

So that way, once you purchase the home, you’ll know you own it.

And that’s my point.

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Today I’m wearing, you know, one of my favorite hats.

Maybe it’s my all-time favorite.

It’s my Papa hat.

And it has all of my grandchildren on it.

All five. So it’s a very special hat indeed.

Contact: https://bergerpoints.com