[flt04]

Does anybody know if the mortgage gets wiped out on a Florida home that goes to foreclosure or if I buy the home am I now responsible for the previous owner's mortgage?

[excon]

Hello fl

It's like you're buying a house from anybody. You need to find your own financing.

excon

[Fr_Chuck]

Once the house if forclosed on, it is then owned by the bank or lender.
So at that point, the bank is merely selling it. And you will have to get a new mortgage for the entire price that the bank is sellingit for.

If the foreclosure has not went though yet and you are buying from the person who is being foreclosed, your new loan will pay off their loan.

Now a foreclosure is not a give away, so you are not going to get a 300,000 home for 50,000 or anything like that.

[s_cianci]

Foreclosed homes are typically sold at auction to the highest bidder. If the winning bid is not sufficient to satisfy the remaining balance on the mortgage then the original mortgagor is responsible for the difference. You are not responsible since you never signed an agreement to pay any mortgage loan. However, you do bring up an interesting point regarding the title to a foreclosed property. In any case, you should always ascertain that any real estate you're contemplating buying has a clear title. When applying for a mortgage the lender routinely requires a title search and includes it as part of the closing costs. But I'm really not sure how it works with a cash purchase, which is what buying a foreclosed property at auction would amount to.