Posted by RobWa on January 15, 2000 at 21:04:01:
Ernie In my state they run a legal notice at least 3 different times. At the begaining when 3 months payments have not been paid—this starts the clock ticking— and another legal notice is placed about a month later. Then the final notice it placed about 5 to 5 1/2 months out telling where, and when, the auction will take place.
If you can get to the owners at the very begining your better off. You will get a better deal by being the one there first. If you wait till the auction date, and go bid, more fees, late payments, etc., will be added and the chance of more competiton in other bidders showing up.
Having said that, here is how you use the info from these notices to buy a foreclosure. Listed will be a legal address---- is different that street add. (something like, lot 4 in the wildwood hills sub div. book20 Harris county Penn.) Using this legal add. go to the countycourt house, and do a search to see if there are liens against the property---- like US Income Tax, or any others like a mec. lien---- also look up and see if there are any other mortgages on the property---- you need to know if this forclosure is a first postion or other. Owners can get several loans with the property being used as the security for the loan. Most common is up to 3 mortgages–but can be more. You will have to double check this carefully your money is riding on this info. What would be ideal is to find a First forcloseing and there are no liens, or seconds, or third mortgages.
What you are looking for is a house that the owners have been paying on for 10 years or longer building up equity, by houseing cost going up in price through the years and they have a small paydown on the loan---- this happens after about 15 years or so out on the loan. One does’t really begain to see any different in loan amount untill the last half of the loan is paid.
Ernie the best way is to get them to sign there interest to you—but you will find alot of owners want to keep there home----and you find them telling you all sorts of tales about there aunt Mildred will loan them the money or they have the money coming from tax refund-- all sorts of tales ---- there heads seem to be in the sand-- and the home is auctioned off anyway.
Look over Joe Kaiser’s course he has a great way to deal with these owners and seems to jolt some sense into the owners. If you want to do forclosures I would buy his course.
The last forclosure I bought for $30,000 spent $20,000 in repairing the roof, back wall where rain damage had run all the way down into the basment, and the back patio. Recarpeted and painted the inside, and out. Was a good Pay day though, sold it for $135,000 so there is money to be made.
I got this deal cause I was willing to wait till the guy closed the taven down. I waited 3 doors down, as he pulled in to his drive way about 2:45 in the morining I met him as he was getting out of his car. Was a few other investors after the home but the owner would not answer the door. I just played my hand a little different and won. Hope this helps