There are calculators that will factor it in, but you need the tax information so you can input it (they basically add it to the mortgage amount and then divide by 12 to give you the monthly cost). My personal opinion is that you should avoid escrowing taxes if possible. I know several people that have had issues with the bank paying it, issues when the loan is sold, etc. Also, when you pay monthly you are basically NOW for a bill that isn't due for months (in some cases 6-12 months). That means you are giving the bank free use of your money for that time. They earn the interest, not you. Think of all the money they hold for this and how much they must make. Same thing with insurance escrow.

Yes, Yes, get a title insurance policy! DH and I bought a cottage on the Susquehanna River from the owner in 2000 and about three months after we bought it, we came down to the cottage and saw a notice on the door, "House Being Sold for Unpaid Back Taxes"! HUH! This was a Sunday and DH rushed to the title insurance office on Monday and told them about the problem. They promptly paid the back taxes and that took care of it. Whew! The problem was that the previous owner had to purchase both the land and the cottage from two different owners. (A utility company had owned the land and rented out the cottages. There was a class action suit to permit the renters to buy the cottages and the land which was why the seller had to buy both.) The title insurance company only searched the title for the cottage, not the land. It was an honest mistake and the seller had no idea about the unpaid taxes because they kept sending the notices to the previous owner and she never notified the current owner. Anyway, I'm darn glad we purchased title insurance!

It will likely have utility easements as around here any property does that have power and water supplied to it. Generally they are at the edges of the property are you going to not buy it because of those? You could always make an offer with the conditions that the items you care about are satisfied. Then you can pay to have a survey done. In my area we always get title insurance and the common thing is for the seller to pay for it. During the title search any outstanding taxes, liens, etc. is generally found. A real estate attorney or title company can do this part. Not sure about a buried oil tank though as it isn't an issue where we live.

I'll take a stab at answering some of your questions... 1.) Large difference between appraisal & judgment. It might be a junior lien holder that is foreclosing. For example, the property is appraised at $180K; there's a first mortgage with $60K outstanding (hypothetical); and a second for $14,895.53. Many times, a homeowner in trouble will keep payments on their first mortgage current but default on the second. In our example above, there's enough equity for the junior lien holder to foreclosure, take title subject to the priority lien, & still anticipate selling the property for enough to clear their position. 2.) Yes, that's probably correct about the taxes. You should pay a visit to town hall & take a look at the land records. That will tell you who the mortgagee(s) is. It will also tell you if my above guess is accurate as to who is actually foreclosing. If it's a junior lien holder foreclosing they have probably paid the taxes. A junior lien holder does not want the priority lien holder to foreclose in a case like this because that foreclosure would wipe out their subordinant position. 3.) Other monies owed. Yes, undoubtedly there are additional charges against the borrower. These would include penalties, late fees, accrued interest, attorney fees, auctioneer fees, advertising fees, appraisal, insurance, real estate taxes, etc. A foreclosing lender will include all of the above into their auction bid. 4.) Also, if it is a subordinate lien holder who is foreclosing anybody bidding at the auction would be taking title SUBJECT TO PRIOR LIENS such as a first mortgage. So, let's say you were the successful bidder at $21K. You didn't buy the property for $21K...you purchased it for $21K plus the $60K I noted as hypothetical above for a total purchase price of $81K & you are responsible for paying the first mortgage. Now, that's a whole 'nother bucket of worms because there's probably no assumption clause in the mortgage...so the holder of the first might require you to get a new mortgage. 5.) Real estate taxes are ALWAYS A PRIORITY LIEN. So, they would have to be paid. In your example though there is no tax lien. Somebody has paid the taxes (likely the lender). The lender would have taken the taxes into consideration in their bidding strategy at auction. So, there would be no consequence to any successful bidder at the sale. Any liens lower in priority than the foreclosing entity (other than real estate taxes, mechanic's liens) is distinguished in the foreclosure process. So, if Aunt Thelma is owed $10K...she loses. 6.) Your link only took me to the county page. I was unable to actually look at anything useful to your example. So, I can't comment on your "detective" work. 7.) NEVER assume there are no title problems. As example, maybe whoever built the house never paid the roofer & the roofer filed a Mechanic's Lien that has been sitting there all of this time. It's a priority lien. There's any number of title issues that could be a problem. Again, a trip to town hall will reveal title issues. 8.) Yes, he could be losing the property for $15K. I once foreclosed approximately $75K against a property appraised at $2.2M. (There were nesting bald eagles & my borrower couldn't sell the property because of the eagles.) I foreclosed & worked out a deal with the city to buy the property from the bank & establish a park around the nesting site. The city purchased the property for what I was owed plus cancellation of all of the back property taxes. Strange things happen. I'm guessing it's a second lien holder that is foreclosing based on what the attorney told you. 9.) Has he trashed the place? Gosh, who knows! 10.) Buying an REO is easier than purchasing at foreclosure auction but not nearly as much fun nor as exciting as standing there with your bidder paddle, "Do I hear $50K? I've got 50...do I hear $55K? Yes, back there in the corner...come on now, it's a great house...now do I hear $60K?" lol /tricia