How Do You Find ALL The Info Out On What Is Owed On A Foreclosure?
Hi all,
I went to my first foreclosure auction today, It was finished in less than 1 minute, and nothing was bid on. My question....some people came pre-qualified with large cashiers checks for the properties.
I need some guidance on how to find out all the info on what SPECIFICALLY is owed on the property. I have never been to the courthouse to find this info...and I wouldn't know where to look if I went there. Any detailed info. would be appreciated...I am hungry to learn!
happy holidays,
Dan
There may not be a simple answer and I am not sure exactly what you are looking for. A successful foreclosure sale will eliminate all junior liens. In general the "priority order" of liens is in the same order as the date of the recording (not strictly true if date on two liens are close but they are recorded out of order). There are exceptions to the general rule in that priority order may not follow temporal recording order. The most common exception are liens due to delinquent property taxes.
If there is only one note on the property then the first bid is the amount owed on the property (assuming the noteholder is the foreclosing party). You may need to check on taxes owed or for tax liens.
The more interesting situation is when the foreclosing lender is in second position. The first note may be delinquent as well. The difficulty is determining the terms of the first note since it will be in place after the foreclosure of the second and the successful bidder will making payments on the first.
You should spend some time at the recorder's office and learn to search titles. This will help you learn. This will provide you with information about initial loan amounts and other liens. It will not tell you what is currently owed since there are likely delinquencies and penalties tacked on. Usually you need cooperation from the owner to get at this information. If an offer is made on the property before foreclosure you can likely get accurate amounts owed since these need to be paid off from the proceeds of the sale.
I hope this gives you some help.
Regards,
Ed
Dear Ed,
Yes I see it coming a book, "The Foreclosure Sale and You"
"Bidder, Buyer or Burner"
From Trustee to Trustor and Back Again."
Ed says it well
Very good advice, follow it, absorb it and then attend a few sales
Read Westland Review's Quick Guide to Foreclosure Law.
And of course the dryest most boring book in the world but crammned with everything you need to know.
Reference Book, a real estate guide. by Calif Dept. of Real Estate. It is on the Medical Associations list as a cure for insomnia. But it has it all. Obviously authored by a committee.
It is often called the "The conformists guide to the straight line practice of real estate. But like all great works of reference you have to read between the pages, and make a lot of what if's.
Read it, Do it. Lucius
Good friend Lucius,
We can do a book together! Maybe it should be titled, "Foreclosures and Shipping Container Houses -- Two Art Forms"
Warmest regards,
Ed
Thank you both of you for your thoughts and insights. You both give me hope!
warmest regards,
Dan
You can also contact a title company and tell them that you are going to give them your future business if they help you with the title serch. I use American Title Company.
There might be some fees for that service but keep in mind that making a mistake at the court steps, may have a grave consequences for a newbee investor. Negative equity can be a pain in the pocket, you know, unless a pops can replace the sonny's recent losses of faith in TCI forums. Do your homework as sugested and when you reed all the books Lucious sugested, let me send you the walking kain because you'll need ti when you are 75. And/or you'll be fine if you solve one more puzle left: I hope weterans told you in a kinder way that you are going to be eaten for lunch buy a mob with account bearing a lots of zeroes. What a bummer but dont be afraid, they tell this everyones to scare them of the wrong way to buy foreclosures. Based on what I know about current Norwalk sales, the prices are preaty much at 85-90% fmv. To know what you should bid, you'll have to do good inspection but I know that you'll ask how will I do that when the owner would not let me... Eheee my friend, that's the problem for which you are going to have to put another post to get the unswer on it. As you can see there is no mre space to type on this page and I am sorry if i spoiled your day with truth but you asked for it. Didn't you?
Just keeding. Information overload can be tragic so I decided to cut the course short for your own good. Keep a good work and let me know when you want me to get you that kain I mentioned earlier.
omega1
[ Edited by omega1 on Date 12/19/2003 ]
Omega1
thanks for your input. Yeah...I have a lot to learn, but this site makes it much more helpful. I have a "bank" (investor) with alot of zeroes in his account that i work with. I'll have to do my homework...or else..."bye bye investor!!
thanks again,
Dan