Foreclosure
I am trying to get into foreclosure, however, I have not been able to acquire a property. First of all most of the properties on the foreclosure list were own by HUD, so even if you were to win the bidding, the new owner has to live in that house for a year before he could flip it. Secondly, not too many mortgage companies want to do a mortgage for a foreclosed property. Third, To get the true idea of unpaid electric and other utility bills. Can anybody guide me in this process? I know there are lots of experienced investors out there.
syeali,
in pa, hud only takes owner occupant bids for the first 10 days, then it's open to investors and fair game.
about mortgage companies not wanting to deal with foreclosures - i don't see why, but hud is expecting cash anyway - so i'd try a hard money lender to secure the house, then maybe refi with a bank to get the new interest rate.
for unpaid bills (and other liens) go to the prothonotary's office.
i hope it helps.
you could try dealing with the homeowners who are facing imminent foreclosure, but before the actual auction. this way, you get a chance to check out the property and you have many more options as far as how you acquire the property (i.e., conventional, sub-to, short sale, etc).
I honestly would never buy at an auction, as you don't even get to see the inside of the place, much less have it inspected. Here in Sacramento, we're in such a seller's market that the foreclosures are auctioning for darn close to retail value.
In the New York area where the prices are hitting the roof, usually all the properties are picked up in the first ten days. Jackman, I didn't understand the last line of your reply. I agree with sacramentophil about the prices for foreclosed properties.
i assume you mean the prothonotary's office - county courthouse. this is where you go to check liens and judgments on the property (including utilities).
in mine here, i can check for municipal and common pleas judgments as well as water & sewer taxes, localities, nuisance liens & abatements ... among other things.
does this clarify better?
yes, thank you. What about other outstanding bills that the foreclosed owner never paid, however, the service vendor didn't file for a lien aganist the owner. If I were to get the possession of the property, would I be legally responsible to pay the outstanding bills if they were ever presented by the service vendor.
Hi syeali,
If the service vendor wanted paid, they would have to record their lein on the property before you record your new deed. If you record the new deed before they record their lein, a service vendor can't tie up the property. They can still go after the prevous owner personally, but the house it yours. Make sure to run your title search before buying though!
Best of Success!
BAMZ
Thank you for sharing your ideas and expertise.