Sheriff Sales

[mwarrior]

I was looking through a few and saw this clause:
CONDITIONS:
The purchaser to assume responsibility for all mortgages, charges, liens,
outstanding taxes, and other encumbrances. No representation is made
regarding the title of the land or any other matter relating to the interest
to be sold. Responsibility for ascertaining these matters rests with the
potential purchaser(s).

Does that mean the mortgage does not automatically get discharged as in the case of a tax sale? Liens I understand would show up on a title search, and taxes would have to be checked with the municipality (correct?). The Charges/Mortgages part though would be good to find out.
Thanks

[Frank]

Sherrif's sales are trickier, all charges on a property remain as a result of the sale, and the successful bidder becomes responsible for them.  Result is that you have a lot more work to do in terms of determining how much these things will cost you.  This also includes any utility charges owing against the property, and you will have to contact all of these interests (first figure out what they might be), and be faced with parties that will usually deny you the info. on the basis of freedom of information, etc.. 

 If you do a title search you will see that there is a first mortgage for a bank amount to say $100,000 and that it was registered ten years ago....now figure out how much is still owing on it - good luck.

[twinn]

Sherrifs sales are a lot riskier and the potential exisits to lose a lot of money.  Years ago I was following all of the sherrif sales and went to quite sherrif sales, it was usually the same crowd and we got to know each ither pretty good, I heard a lot of horror stories from some other bidders.  The problem with those sales are uneducated bidders that a lot of times walk away from there deposits.  ie.. a house an approx mortgage of 100k, you assume that mortgage plus all other expenses that Frank mentioned, you can not inspect the property and have to bid site unseen. Also, the added expense of having the tenant ejected etc..  When you hear about this sales, you might hear that the property was sold for 50 000, you hear that that is just the cost of purchasing the mortgage and all debt.  It is like a car auction were an auctioner just starts rambling and people get caught up in the frenzsy.  Bottom line, unless you have money to lose, I would not bid on Sherrifs sale.