Need Advice On Judicial Foreclosures
Hi Everyone,
I'm looking to go in the direction of pre-foreclosure.
I live in a judicial foreclosure state (NYC) and in my research I discovered that it could take 12 to 18 months after the lis pendens has been filed before the house actually goes up for auction.
I have time to go to the courthouse and look through lis pendens but my question is what has been a successful procedure for others in finding the motivated sellers in pre-foreclosure in a judicial state?
My gut is telling me to go through the lis pendens from last year because their auction should be coming up soon ... is this a safe bet?
thank you for your adivce
Nikki
Nikki,
It is a good idea to catch foreclosure early when we are in a “down” market, and late in an “up” market. This is because in an UP market most folks can sell outright after a while, versus facing foreclosure; but if the foreclosure is still there after 8-9 months they are out of denial and ready to talk.
However, when prices are falling and foreclosure rates are going up, a property in foreclosure ain't likely to sell right away and they know it, so its good to catch them before the arrearages begin to add-up, and before the competition jumps in.
And, too, remember that whatever the arrearages may appear to be, virtually any lender (loss mitigation department) will give you a forbearance arrangement (i.e., they’ll defer arrearages, or even place them on the other end of the loan). And when dealing with loss mitigation you don't have to be too cautious about your intent (re. not being the borrower) or mince any words...they will work with you (…unless they have already given the borrower a forbearance and he has let them down)..
Bill Gatten