Legal Question in Real Estate Law in Illinois

You need to do your due diligence prior to the bid.

Now you have a big can of worms. You need to pull title, pay the association, pay the assessments, pay the special assessments and pay property taxes, as well as any liens that were not cleared off in the foreclosure.

It will probably cost 2500 - 3500

call me if you have any questions

joe

I agree with Mr. Mchelotti about the fact that the auction probably had guidelines about what we call due diligence -- which in part means whether you can inspect the unit, as well as find out the kinds of things you are asking about. HOPEFULLY the auction provided much of the information you're talking about. Then, once you go do auction, if you haven't raised any questions, you're "done". That's what they are often all about.

The next step should be, however, that the auctioneer or the seller will present a formal real estate contract to you that was probably one of the resources on line that you should have been given and looked at. The contract will identify many of the things you are talking about. As Mr. Michelotti says, title may be subject to outstanding assessments and liens for them. Sometimes, if there was both a first mortgagee and second mortgagee, if the first mortgage was foreclosed but somehow not the second, you may wind up with a unit with what was a second and because of the foreclosure is now a first. The contract should obligate the seller to provide you with a title commitment as part of the sale. If not, you are on your own as he suggests. I hope not. As to whether the prior owner might be able to get the property back, that in great part depends on whether the foreclosure was proper, and whether you get a title policy as part of the purchase. If you do and the prior owner comes back, no you should not lose title but rather would have a claim against the title insurance company on an ownership contest issue.

It takes YEARS for attorneys to become proficient in these matters and you want to DIY? If you paid less than $3,500 for the unit and are willing to risk it all, I suppose that's up to you. Otherwise, I heartily recommend you bring someone like Mr. Michelotti or me on board. It's called peace of mind. No?

PS attorneys like the "sale side" of deals because often the attorney can produce the title insurance required of the seller and earn a commission for doing so. On the "buy side", especially for a condo where there is no concurrent sale, that doesn't happen and so it's pretty much a la carte because condos are just typically that much more complicated. And with the added ingredients of a foreclosure, possible receivership and auction sale, just that much more. The only possible "silver lining" is that if the sale is being authorized by the bank that foreclosed, it will want a clean deal with few problems. Possibly......