Foreclosure
Last year, my husband and I purchased a new home. We had a realtor offer us a guaranteed buyout on our then current home who took our money and filed bankruptcy. In order to keep my new home, we signed a lease purchase with a tenant who needed a little while to get her credit straight to purchase the home. She just informed me that her job is being outsourced. Since i have had problems with her paying in the past, I am certain that this will cause an eviction. Our contract assured a selling price which would cover my first and second mortgages on the property. A similar home in this neighborhood has been on the market for close to a year for significantly less than my selling price. If our contract falls through, what would the financial ramifications be to me with a first and second mortgage foreclosure? I know what it will do to my credit! ARGGH!
Thanks. :-?
You might try to locate the owner by using a skip trace service, thye usually run around $25 - $35 depending on where you are, as to what stage he is in you might be able to find out from the trustees.
Good Luck
reinatalie
you make a very good point. seems odd that they would change the locks without owning the property. I should have thought about that. So what would be the next step? How would I find out who the mortgage company is, and when I do can I make them an offer or do I have to wait until it goes on the market? Alot of banks around here - Cincinnati - seem to put the properties on the market first before they auction them. Either way, if its possible I would like to get a shot at it before either one of those things happens.
You could definitely find out who the lender is, by just going to a recorders office in your county and searching for that information. As far as buying it from the lender.. as you mentioned most of them just hire brokers and put it on MLS. I think it would be pretty tough, unless you have a connection there to buy a property directly from lender.
The lender can (and will) change the locks before foreclosure if they feel their interest in the property may be compromised, i.e. a vacant house. They also will winterize the plumbing to prevent damage caused by freezing pipes. Usually, the contractor will post a notice on the front door or window that this has been done, and has contact info on it.
Sounds like it is in preforeclosure to me, and you are probably not the only one aware of the house being in preforeclosure. I would first find out how much is owed on the property, then contact your old neighbor to work something out.
Keep in mind that you own a note on the property, for a specified redemption period, and earn interest for each month the note remains outstanding. At the end of the redemption period, you may request the deed to the property.
If I recall correctly, the redemption period is 2 years for improved property.
You have to issue a Notice of your intention to request a deed to the property to the property owner no earlier than 60 days prior to the end of the redemption period. ). The property owner then has 60 days in which to redeem the property.
Delinquent taxes must be paid before a deed will be issued on the property
If the owner files bankruptcy, the game plan will change for you.
I would make contact with the property owner and see if you could acquire the property.
As I said earlier, I can only redeem/claim the property Dec 2005 but it is under foreclosure right now. What should I do? What is going to happen to my tax lien/money?