In mortgage states, the sale of the property, auction or foreclosure takes place at the courthouse.
The foreclosure process is systematic and well defined process. At regular times of the day and week, the court auctions off the property (the sale).
You can find out the times by simply calling the office and asking the clerk.
You may have heard the statement that the property "was sold on the courthouse steps." Most often, it actually happens in the lobby, foyer or a specified location indoors out of the weather.
A typical sale would involve:
a. A scheduled time for properties to be sold.
b. A clerk making an announcement of file case numbers and their status (solved, available, etc.)
c. A clerk listing the case and/or property description and asking for bids.
d. The bidding starts and a winner emerges.
e. The property is bought and paid for at the courthouse.
The property will usually have at least one bidder.
The lender wants to ensure the property is sold for at least what is owed on the property.
Therefore, the lender or their designate starts the bidding at the amount being foreclosed on. If that is the only bid, the auction is over.
The lender will actually receive the money so there is no real cost there have been the occasional errors where the lender did not protect their debt and a bidder other than the lender received the property for a song.
If there are multiple bidders, the process can be quite entertaining.
We strongly that you go and visit the courthouse and watch several auctions.
You will learn a lot about the process.
You may even try to get to know some of the other investors at the foreclosure sale. Banks, lawyers, agents, investors, title company representatives and more will be in attendance.
They are all excellent contacts for the investor.
If you own a property, check the documents while you are at the courthouse. Just ask the clerks. It will help if you have the legal description. Get it from your mortgage documents. Also review the bulletin boards in the offices and pick up any publications and notices in the offices. Check the Lis Pendens list (legal notice of foreclosures).
In deed of trust states, the process is a little different The trustees controlling title of the property can control the location of the sale, which may or may not be at the courthouse. Usually the trustees publish notices of sale location.
There are numerous ways to find foreclosures properties. Listed below are some of the most common:
Courthouse Research
You can usually find information you are looking for the Clerk of the Court's office, County Recorder's office or Land Records department.
In the US, this will be on a countywide basis.
Start by calling the County Courthouse to find where real estate property records are located.
Each Courthouse has different methods of filing documents, some in large books, some on microfiche files and others on computers.
As time goes by, this is becoming more and more computerized. In a very progressive county, this information may even be online.
It is important to ask a County employee for assistance.
They can show you where real estate property records are located. They can show you where to start your search and where you can get more detailed information when you locate a potential suitable property. You may want to start with the lis pendens files or the docket sheet, where the most recent court actions are first recorded.
Write down the foreclosure case number and then review the file to gather data about the foreclosure. All the information concerning the title to a property is public record. Remember, only recorded information in the public records can enforce the priority is established by the date and time of recording.
To check on deed information, visit the Tax Assessor's office or in another part of the Courthouse. Locate the correct volume and page to find the deed. The deed will show the owner's name, give a legal description, and will have a map or plat book and page that shows the physical plat of the property.
In many instances, you will find a mortgage on the pages following the deed. From the mortgage document, you can determine the type of financing, original loan amount, interest rate, legal description, date of first payment, procedure for foreclosure, assumable or nonassumable indicators, and any prior liens.
If other liens are found, recheck them in the appropriate Deed Book. These are going to have to be dealt with if the property is to be purchased before the foreclosure sale. Check also for judgment by looking in a Judgment Book and page number or on a microfiche file. If found, check to see if the judgment was paid.
By definition, a lien is a claim one has for securing a debt owed by someone. A judgment attaches to and serves to lien all real estate owned by a person in the country where it was files. A property owner with no liens can, therefore, give good title to his or her property.
Netronline
Provides an easy to use interface for finding both your county's Recorder and Assessor, actual document availability varies by county http://www.netronline.com/public_records.htm
There are many sources to find foreclosures. I hope that you can find the foreclosure before it has gone too far into the foreclosure process. Find below a few locations to begin the search:
Newspaper Classified Sections
Legal newspapers
Attorneys
For Sale by Owners
Realtors
Auction Companies
Banks REO departments
US Marshall's Service (check the HUD Web site)
Listing Services
IRS auctions (check the HUD Web site)
Bankruptcies
Probate Court
Your own advertising
County courthouse, town ball, or registry of deeds
Legal Newspapers – This is an excellent source of information on foreclosures, including Trustee or Sheriff’s sales. Identify the date of the security instrument and other pertinent information about the original mortgage amount, type of mortgage and property location. Also, find the auction date or Sheriff’s sale and the amount of the back mortgage payments.
[addsig]
In your experience do you find many condo's in foreclosure. I'm looking to buy my first place later this year and am wondering if foreclosure might help me find one at a discount. Your thoughts?
No not really, it all depends on the market, the lender, the volume of REO's the lender has, property market time and the list goes on.
I will tell you that I purchase a property 80% or less of market value with a lot of factors, market time & repairs weigh vary heavy on my evaluation of the property.
[addsig]
There are basically three time frames in which to buy foreclosures. (1) is just after the notice of foreclosure is served to the homeowner (called saveral different things). Here you typically work with the homeowner to buy the house prior to the foreclosure. (2) At the sherriff's sale. Here you are buying it from the county and you attend an auction. (3) If it was not purchased at the auction it goes back to the bank and becomes and REO. Here you work with a realtor as the property will be on the MLS.
Just an FYI - in most areas of the country, all three of these phases are VERY competitive. There are dozens of professional investors that work Phase 1 and Phase 2 full time. Phase 1 involves some skill in working with the home owner. Phase 2 involves an extreme amount of knowledge or you can get burnt. In Pase 3 there is no guarantee that you will get a discount price. Anything in the MLS that is priced well will get a contract within hours. But, Phase 3 is the easiest to work.
Many places:
A Realtor
Bank Web Sites
Newspaper
FHA and VA Web Site
HUD Web Site
Etc...
Go to local sheriff sales...
Find foreclosures in the newspaper...
Good Luck!
[addsig]
You will find TCI's links page to be a great source of information at http://www.thecreativeinvestor.com/Web_Links-index.html
The courthouse
In mortgage states, the sale of the property, auction or foreclosure takes place at the courthouse.
The foreclosure process is systematic and well defined process. At regular times of the day and week, the court auctions off the property (the sale).
You can find out the times by simply calling the office and asking the clerk.
You may have heard the statement that the property "was sold on the courthouse steps." Most often, it actually happens in the lobby, foyer or a specified location indoors out of the weather.
A typical sale would involve:
a. A scheduled time for properties to be sold.
b. A clerk making an announcement of file case numbers and their status (solved, available, etc.)
c. A clerk listing the case and/or property description and asking for bids.
d. The bidding starts and a winner emerges.
e. The property is bought and paid for at the courthouse.
The property will usually have at least one bidder.
The lender wants to ensure the property is sold for at least what is owed on the property.
Therefore, the lender or their designate starts the bidding at the amount being foreclosed on. If that is the only bid, the auction is over.
The lender will actually receive the money so there is no real cost there have been the occasional errors where the lender did not protect their debt and a bidder other than the lender received the property for a song.
If there are multiple bidders, the process can be quite entertaining.
We strongly that you go and visit the courthouse and watch several auctions.
You will learn a lot about the process.
You may even try to get to know some of the other investors at the foreclosure sale. Banks, lawyers, agents, investors, title company representatives and more will be in attendance.
They are all excellent contacts for the investor.
If you own a property, check the documents while you are at the courthouse. Just ask the clerks. It will help if you have the legal description. Get it from your mortgage documents. Also review the bulletin boards in the offices and pick up any publications and notices in the offices. Check the Lis Pendens list (legal notice of foreclosures).
In deed of trust states, the process is a little different The trustees controlling title of the property can control the location of the sale, which may or may not be at the courthouse. Usually the trustees publish notices of sale location.
There are numerous ways to find foreclosures properties. Listed below are some of the most common:
Courthouse Research
You can usually find information you are looking for the Clerk of the Court's office, County Recorder's office or Land Records department.
In the US, this will be on a countywide basis.
Start by calling the County Courthouse to find where real estate property records are located.
Each Courthouse has different methods of filing documents, some in large books, some on microfiche files and others on computers.
As time goes by, this is becoming more and more computerized. In a very progressive county, this information may even be online.
It is important to ask a County employee for assistance.
They can show you where real estate property records are located. They can show you where to start your search and where you can get more detailed information when you locate a potential suitable property. You may want to start with the lis pendens files or the docket sheet, where the most recent court actions are first recorded.
Write down the foreclosure case number and then review the file to gather data about the foreclosure. All the information concerning the title to a property is public record. Remember, only recorded information in the public records can enforce the priority is established by the date and time of recording.
To check on deed information, visit the Tax Assessor's office or in another part of the Courthouse. Locate the correct volume and page to find the deed. The deed will show the owner's name, give a legal description, and will have a map or plat book and page that shows the physical plat of the property.
In many instances, you will find a mortgage on the pages following the deed. From the mortgage document, you can determine the type of financing, original loan amount, interest rate, legal description, date of first payment, procedure for foreclosure, assumable or nonassumable indicators, and any prior liens.
If other liens are found, recheck them in the appropriate Deed Book. These are going to have to be dealt with if the property is to be purchased before the foreclosure sale. Check also for judgment by looking in a Judgment Book and page number or on a microfiche file. If found, check to see if the judgment was paid.
By definition, a lien is a claim one has for securing a debt owed by someone. A judgment attaches to and serves to lien all real estate owned by a person in the country where it was files. A property owner with no liens can, therefore, give good title to his or her property.
Netronline
Provides an easy to use interface for finding both your county's Recorder and Assessor, actual document availability varies by county
http://www.netronline.com/public_records.htm
There are many sources to find foreclosures. I hope that you can find the foreclosure before it has gone too far into the foreclosure process. Find below a few locations to begin the search:
Newspaper Classified Sections
Legal newspapers
Attorneys
For Sale by Owners
Realtors
Auction Companies
Banks REO departments
US Marshall's Service (check the HUD Web site)
Listing Services
IRS auctions (check the HUD Web site)
Bankruptcies
Probate Court
Your own advertising
County courthouse, town ball, or registry of deeds
Legal Newspapers – This is an excellent source of information on foreclosures, including Trustee or Sheriff’s sales. Identify the date of the security instrument and other pertinent information about the original mortgage amount, type of mortgage and property location. Also, find the auction date or Sheriff’s sale and the amount of the back mortgage payments.
[addsig]
In your experience do you find many condo's in foreclosure. I'm looking to buy my first place later this year and am wondering if foreclosure might help me find one at a discount. Your thoughts?
Thank you.
Yes you will find condominium's in foreclosure as well and yes you can purchase at a discount
[addsig]
Is there a general rule for how much of a discount foreclosure properties can be bought?
Fishbowl1
No not really, it all depends on the market, the lender, the volume of REO's the lender has, property market time and the list goes on.
I will tell you that I purchase a property 80% or less of market value with a lot of factors, market time & repairs weigh vary heavy on my evaluation of the property.
[addsig]
There are basically three time frames in which to buy foreclosures. (1) is just after the notice of foreclosure is served to the homeowner (called saveral different things). Here you typically work with the homeowner to buy the house prior to the foreclosure. (2) At the sherriff's sale. Here you are buying it from the county and you attend an auction. (3) If it was not purchased at the auction it goes back to the bank and becomes and REO. Here you work with a realtor as the property will be on the MLS.
Just an FYI - in most areas of the country, all three of these phases are VERY competitive. There are dozens of professional investors that work Phase 1 and Phase 2 full time. Phase 1 involves some skill in working with the home owner. Phase 2 involves an extreme amount of knowledge or you can get burnt. In Pase 3 there is no guarantee that you will get a discount price. Anything in the MLS that is priced well will get a contract within hours. But, Phase 3 is the easiest to work.