PreForeclosures
What exactly are PRE-Foreclosures? As opposed to Foreclosures?
And how do I go about finding preforclosures?!?
Thanks!
[addsig]
What exactly are PRE-Foreclosures? As opposed to Foreclosures?
And how do I go about finding preforclosures?!?
Thanks!
[addsig]
pre-foreclosure refers to the time before the sheriff or trustee sale. Foreclosures are referring to either buying at the auction or possibly as a reo when listed with a realtor.
Thank you much for the definition...
Now I ask - Is the best way to find pre foreclosures in the courthouse? I am searching the courthouse records and mailing to recent people who have received "foreclosure" notices... Are there any other ways to find these motivated sellers?
Thanks!
[addsig]
Was the property represented by Real
Estate broker, or did you find the owner directly?
Sad and frustrating as it sounds, looks like you might have to cut your losses on this one and bail. The money you spent--except, presumably, your earnest $$--is gone, and cannot be retrieved unless there was provable deceit, maybe then you have legal recourse. And about the office; maybe it wasn't disclosed, but it is what it is. Could you work with that? Maybe at a better price?
Now that their game is up, however, maybe the seller and their bank might consider a short sale; possibly in partnership with one of the short sale gurus on this site and in your area. How's the appraisal/FMV? The numbers are big enough where this might be worth passing along to an experienced investor.. You'd have to move fast though.
It sucks when a deal goes bad like that. But at least you found out now, before the closing, and you have a lawyer who is, at some level, looking out for you. Sorry it's become such a mess. Good luck salvaging something out of it, experience if nothing else.
This sounds like a good candidate for a short sale. Make the lender an offer less than you are presently planning to pay for the property. You will have to get the homeowners permission to speak to the lender. IMO this is the only way you can make this deal work!
Quite frankly, this is not uncommon at all. I can't imagine you really spent that much money here. You could have done your own title search up front and you could have checked the CofO.
Yes the banks need to verify this but you should do it too as part of your due dilegence to save you time and money. Plus if when the actual paperwork is done and it agrees with you it only validates your conclusion.
Investing in real estate is the same as investing in anything else. You have the chance to LOOSE money! This business is not easy money and you're not going to get rich quick. There are people who have gotten rich quick but there are also people that win the lottery.
It's time to roll up your sleeves and either move on or work to creatively find a solution.
GOOD LUCK
I am really shocked. Is there ANYONE I can hold liable for this... Or I am just going silently put up with this scam
Yes there is. Go to the nearest mirror, look closely and you'll find them. Yep, it's you.
Sorry for being so blunt, but from what you've posted, there is no scam here. It's simply a deal gone bad because the investor (you) did not properly do the due diligence.
First let me say that I don't know what "Cof O" means. However, I think I can still work this with what was posted.
Lets start here:
The seller never told us about
While there are some things that a seller must disclose and some that they may not have to, the key thing to remember when investing is to check everything out for yourself. Don't rely on what the seller says (or doesn't say).
my lawyer told me about it much later than he should have
When running a title search, it's the attorney's job to find problems with the chain of title, not inform you of what you are buying. Again, no offense, but that is something that you need to verify. And so what if it's a 2 fam and office as opposed to a 3 fam. All 3 units will be rentals, correct? Wouldn't it still work like this? Did you verify rent income and cashflow?
property will get foreclosed on the 30th of Sept and I need to close before that otherwise, I will lose
I find this hard to believe. If the seller is in foreclosure but has a valid contract to sell, most lenders will allow a postponement of sell to give enough time to close the deal. Lenders DON'T want to own property.
I am purchasing the propery for $730K, there is liens against for more that $740
This is something that you should have found out before investing $$$ into this deal. A simple prelim title search would have uncovered this, and you would have been out $50, tops. Why were you relying on THEIR attorney and not your own?
Again, sorry for being blunt, but purchasing property goes in a specifc order. Verify your financing (what you qualify for), Know what you are buying, make an offer, do prelim title check. If all this works out, then you can order an inspection and appraisal.
Roger
Does the realtor you are working with know how to do short sales? If not, I agree with the previous poster, that contacting an experienced investor who is familiar with doing short sales whould be a good solution. I don't think this deal is necessarily lost.
CoA = certificate of occupancy (stating that a property is a duplex, triplex, etc). This is called different things in different states.
I agree with others that a short sale may be an alternative. But it can be difficult especially this close to the auction. Your best bet will be to have the seller's attorney contact the lender and ask for a discounted payoff to match the sales contract price.
If the lender has not received payments in 2 years this may appeal to them. Having the sellers attorney contact them will add legitimacy to the request. Normally I would recommend that you contact them on behalf of the seller, but this is an exception given the circumstance.
Thank you, everyone, for such sincere and helpful comments. I was deeply consoled just by the fact someone out there cares to give an honest advice.
As for the case, I am trying to still hold on to it. Looks like the bank might still give me mortgage give the confusion with the Certificate of Occupancy. However, there are still too many uncertainties -- one being the owner not being able to close. My lawyer is not very aggressive but I am reluctant to change him this far into this thing. I will try to contact the lender (not sure I will be successful) and ask for reduction. We will see what happens. All I can say is this business is not easy.....
Thank you again, I will keep you updated. Any additional ideas are always appreciated.