Due Diligence ??
Ok heres what I know as I continue to school myself in DD...on a local Property that is going to court sale the minimum bid is approx 49k... the amount owed on the first (per a property profile report) is apprix 189k. The house sold originally in 95 for 235k it shows tax value at 281k....Now here is what I am trying to figure out... is the profile going to list ALL loans (there is a spot for it to list 2nd mort but it doesnt)? I assume it has a least a 2nd because the minimum bid is usually the amount that is owed to the foreclosing entity. Also the taxed value is higher than the original sales price which tells me that it has been reassessed (probably at the time of a later loan).....where do you find all of the information when looking at these and just what do you absolutely need to know to determine wether or not to attmpt a purchase......I am not really ready to move but if this is a second and the first is assumed by winning bidder there would still be sufficient equity (unless there is major damage, but assuming it is in good shape) since fmv is probably closer to 400k.....last question if it sells for higher than the debt where does the rest of the money go?? I assume that someone foreclosing cannot get MORE than what they are owed....so does that go back to the person being foreclosed or where????
thanks all
B
You need to find out if the lien is a 1st or 2nd. Sounds like it may be a 2nd. Also check other liens like taxes, including IRS, hospitals, Wards etc. They will all still be there when you own the property. The 1st could be $500,000. You need to find out. I can search on line here in Texas. You should be able too. You should still hire a pro to be sure before spending $50,000.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
Hi BMan,
You probably should check with your county recorder's office in addition to what you have done so far.
Here is a link to it to help you out.
http://www.criis.com/contracosta/official.shtml
John (LV)
My suggestion you need to build a close harmonious relationship with someone at the title company. Sounds like you may be in a little heavy. Be sure of the unpaid bal on lst and second. Call the person conducting forcl sale and get the start bid and if possible a list of the costs which are included in said start bid.
Also watch your comps and be damned sure there are no liens popping and thats where the title co. contact is of great help.
Cheers Lucius
Thanks all,
like I said I am only schooling myself and am not looking to bid a this time but I was using this actual Foreclosure as a tool to learn what to look for and where to get that info. I have a connection that will get me a good property profile and sounds like I need to find a connection at a title company.........I guess they have the ability to do a title search and see just what is attached to it? Makes sense if that is it.......