Which bank did you deal with? What happens with the taxes? I have a property I am looking at. It is 3 years behind on taxes and bank owned at this point & abandoned for at least a year. However it is listed with a local Real Eastate company, yet not on the MLS. How did you aproach the bank? Did you get see the inside or inpect. Thanks in advance Joy
You should select a good title company, or attorney with closing experience to handle to paperwork for you now that you have a signed PA.
The title company will make sure that you obtain clear title and that all taxes and charges against the property are satisfied. If you have ANY doubt, get an attorney - for $500 or so, you should be able to get a reputable attorney to watch your back and look out for you.
Normally your mortgage company will be looking out for you (as that is how the look out for themselves) but with a cash transaction, you need an extra set of eyes (not to mention your limited experience )
sounds to me like they are only offering to sell you the mortgage lien; not the property.
You really should get yourself and attorney - perhaps if you call the title company you plan to use they would be willing to have their in house attorney make a phone call on your behalf.
You need specific legal advise, which it impossible for even those of us with similar experience to help you given the complexities of your particular situation.
I have bought many , many reo properties and never
heard anything so ridiculous! The guys are right get
a proper title search if you are still interested before
you go any further ! This not the way this business is
done.
The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. However, when no power of sale is present, lenders may, at their option, choose to forego a lawsuit and foreclose by selling the property, as outlined below in the "No Power of Sale Foreclosure Guidelines".
The nonjudicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower preauthorizes the sale of property to pay off the balance on a loan in the event of the their default.
In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative.
Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".
If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. However, if the deed of trust or mortgage contains a power of sale clause, but does not specify the time, place and terms of sale, then a foreclosure sale may take place at the front or main door of the courthouse of the county where the property located, after default of the deed of trust or mortgage, for cash to the highest bidder.
The sale may not take place until thirty (30) days after the last notice of sale is published.
Said notice of sale must be given by publication once a week for four (4) successive weeks in a newspaper published in the county or counties in which the property is located.
If the property is under mortgage in more than one county, the publication is to be made in all counties where it is located.
The notice of sale must give the time; place and terms of said sale, together with a description of the property.
If no newspaper is published in the county where the lands are located, the notice shall be placed in a newspaper published in an adjoining county for four (4) successive weeks.
No Power of Sale Foreclosure Guidelines
If no power of sale is contained in a mortgage or deed of trust, the lender, or any assignee thereof, may, after default of the mortgage or deed of trust, either file a lawsuit to foreclose or foreclose by selling the property to the highest bidder for cash at the courthouse door of the county where the property is situated.
Said sale may not take place until after notice of the time, place, terms and purpose of the sale has been published for four (4) consecutive weeks in a newspaper published in the county wherein said lands, or a portion thereof are situated.
My concern is that since they did not follow through with the foreclosure proceeding they have not taken control of the property. They simply do not own the property so you are purchasing the note not the real estate.
Sound like they are simply playing off your lack of knowledge in this area.
What you need to do is review the title chain! To determine what position the subject note is in.
If you made a written agreement to purchase and it was accepted you are now held under the terms of the agreement, you simply can not back out of the agreement unless you have used the proper contract clauses!
I would highly suggest you get some legal advice on this issue ASAP for I fear you made some deadly errors in the agreement.
You can not continue with any foreclosure proceedings as an order of stay has been placed and if you attempt to collect this debt during this time frame you can face fines and possible criminal actions along with civil damages from the home owner. This is with any bankruptcy petition.
You will have to seek a relief from the order of stay to proceed with the foreclosure action.
I would not suggest you handle this type of action yourself and that you should seek legal council.
[addsig]
Which bank did you deal with? What happens with the taxes? I have a property I am looking at. It is 3 years behind on taxes and bank owned at this point & abandoned for at least a year. However it is listed with a local Real Eastate company, yet not on the MLS. How did you aproach the bank? Did you get see the inside or inpect. Thanks in advance Joy
You should select a good title company, or attorney with closing experience to handle to paperwork for you now that you have a signed PA.
The title company will make sure that you obtain clear title and that all taxes and charges against the property are satisfied. If you have ANY doubt, get an attorney - for $500 or so, you should be able to get a reputable attorney to watch your back and look out for you.
Normally your mortgage company will be looking out for you (as that is how the look out for themselves) but with a cash transaction, you need an extra set of eyes (not to mention your limited experience )
good luck
[ Edited by Prefontaine1550 on Date 07/17/2007 ]
[ Edited by Prefontaine1550 on Date 07/17/2007 ]
sounds to me like they are only offering to sell you the mortgage lien; not the property.
You really should get yourself and attorney - perhaps if you call the title company you plan to use they would be willing to have their in house attorney make a phone call on your behalf.
You need specific legal advise, which it impossible for even those of us with similar experience to help you given the complexities of your particular situation.
I have bought many , many reo properties and never
heard anything so ridiculous! The guys are right get
a proper title search if you are still interested before
you go any further ! This not the way this business is
done.
The lender needs to follow the following to take control of the property in your state.
Judicial Foreclosure
The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. However, when no power of sale is present, lenders may, at their option, choose to forego a lawsuit and foreclose by selling the property, as outlined below in the "No Power of Sale Foreclosure Guidelines".
NonJudicial Foreclosure
The nonjudicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower preauthorizes the sale of property to pay off the balance on a loan in the event of the their default.
In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative.
Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. However, if the deed of trust or mortgage contains a power of sale clause, but does not specify the time, place and terms of sale, then a foreclosure sale may take place at the front or main door of the courthouse of the county where the property located, after default of the deed of trust or mortgage, for cash to the highest bidder.
The sale may not take place until thirty (30) days after the last notice of sale is published.
Said notice of sale must be given by publication once a week for four (4) successive weeks in a newspaper published in the county or counties in which the property is located.
If the property is under mortgage in more than one county, the publication is to be made in all counties where it is located.
The notice of sale must give the time; place and terms of said sale, together with a description of the property.
If no newspaper is published in the county where the lands are located, the notice shall be placed in a newspaper published in an adjoining county for four (4) successive weeks.
No Power of Sale Foreclosure Guidelines
If no power of sale is contained in a mortgage or deed of trust, the lender, or any assignee thereof, may, after default of the mortgage or deed of trust, either file a lawsuit to foreclose or foreclose by selling the property to the highest bidder for cash at the courthouse door of the county where the property is situated.
Said sale may not take place until after notice of the time, place, terms and purpose of the sale has been published for four (4) consecutive weeks in a newspaper published in the county wherein said lands, or a portion thereof are situated.
My concern is that since they did not follow through with the foreclosure proceeding they have not taken control of the property. They simply do not own the property so you are purchasing the note not the real estate.
Sound like they are simply playing off your lack of knowledge in this area.
What you need to do is review the title chain! To determine what position the subject note is in.
If you made a written agreement to purchase and it was accepted you are now held under the terms of the agreement, you simply can not back out of the agreement unless you have used the proper contract clauses!
I would highly suggest you get some legal advice on this issue ASAP for I fear you made some deadly errors in the agreement.
Good luck
[addsig]
[ Edited by Prefontaine1550 on Date 06/07/2008 ]
You can not continue with any foreclosure proceedings as an order of stay has been placed and if you attempt to collect this debt during this time frame you can face fines and possible criminal actions along with civil damages from the home owner. This is with any bankruptcy petition.
You will have to seek a relief from the order of stay to proceed with the foreclosure action.
I would not suggest you handle this type of action yourself and that you should seek legal council.
[addsig]