Recorded Papers
The best source for accurate information is the papers recorded in the courthouse. Consider these official documents as the final status of any situation, no matter what the property owner says or claims.
People facing foreclosure seem to have all kinds of excuses, explanations, and stories as to why something should not be on their credit report or why a lien should not be on their property. Some of the stories are unbelievable. Others sound plausible.
But as a working real-estate investor seeking foreclosure properties, believe none of the property owner's stories. Assume the recorded papers at the courthouse are always accurate.
Without strong written proof, there is no way to overcome those recorded documents. For example, the title search might reveal an $800 unpaid water bill. The local water authority placed a lien against the property. When you ask the property owner about the lien, the response is, “I paid that.” Your response should be, “Prove that it is paid.” Short of a canceled check that proves the payment, the lien stands. If the property owner cannot find the canceled check, you have to assume the water bill was never paid. Even if it was paid, without irrefutable proof that the payment was made, the bill will need to be paid, since a municipal lien has been placed against the property. And without the proof, it's likely the property owner is not telling the truth about the lien.
Clerical errors and mistakes occur. However, you will rarely find them when dealing with foreclosure properties. The error is almost exclusively on the part of property owners. Don't believe their story over the recorded documents.
Review the documents recorded in the courthouse carefully. They can tell you a lot about the liens and the amount owed.
