Posted by Eric Canfield on April 13, 1999 at 02:20:35:
It is too late to get to the seller in this case. Where would I find the rules?
Thanks!
Eric
Foreclosure Auction - Posted by Eric Canfield
Posted by Eric Canfield on April 13, 1999 at 24:05:15:
I’m very interested in a house that is coming to sale next week. The judgement amount was $31,000 so I’m assuming the opening bid will be somewhere in that vicinity. Comparable houses in the neighborhood are going for $75-85k. This one appears to be in good shape and won’t require too much rehab.
My question is: are there any other ways to check the title out other than going through a title company? I don’t want to spend $200 since who knows how much competition there is going to be.
The house is a 'bute, but I don’t want to get burned with a bad title.
BTW - there is generally little competition in my area at auctions, but this one could bring some out of the woodwork.
Thanks!
Eric
Re: Foreclosure Auction - Posted by Mike Oldfield
Posted by Mike Oldfield on April 13, 1999 at 24:36:32:
Charm the shi% out of the little blue haired busy bodies at the county clerks office and play dumb and ask pointed questions they will usually help you figure out the whole process and all the info is recorded there.
Usually the auction company has done this legwork for you so they can maximize the price by eliminating all the mystery. Sorry for the dumb question but did you ask them. What type of auction
Tax sale
mortgage foreclosure
bankruptcy
what
Good Luck
Mike Oldfield
Re: Foreclosure Auction - Posted by Eric Canfield
Posted by Eric Canfield on April 13, 1999 at 01:49:05:
It is a Mortgage Foreclosure. I was planning on stopping by the clerk’s office tomorrow and checking out the court case etc… Thanks for the advice!
Eric
Re: Foreclosure Auction - Posted by Ben
Posted by Ben on April 13, 1999 at 06:59:27:
Run…don’t walk, to the local tax collector’s office
and check if there are any property tax liens. Nine times out of ten if people are not paying the mortgage
they are not paying the property taxes. You will take the property “subject to” these liens, and they can be hefty. Also,make sure the foreclosing mortgage is a first position mortgage and not a second. If it is a second, you will take it subject to the first. Ben
Re: Foreclosure Auction - Posted by ScottE
Posted by ScottE on April 13, 1999 at 02:07:52:
Eric,
Be careful with foreclosures. Besides the liens that can pop up, depending on what state you are in, there may be what is known as a “two-thirds rule” at the Sheriff’s sale. This means that the opening bid for the property would be 2/3 of its’ appraised value(usually a ‘drive-by’ appraisal by 3 appraisers),regardless of what’s owed. This means that the owner could be getting booted out, but in the case you mention, if the 2/3 rule applies, he could be getting a handsome sum as he leaves! Most folks in foreclosure do not know this. Your best bet is to find out the rules in your state and possibly get to the owner before the sale.
State Rules - Posted by Jamie M. Perez (TX)
Posted by Jamie M. Perez (TX) on April 13, 1999 at 20:37:47:
Check the internet under your state’s government site. If you can get the name of some of the trustees that handle auctions at your courthouse every month, they may be willing to tell you without you having to do all that research. I got the trustee’s name by calling the lender, who gave me their law firm for the property in question. The law firm gave me the name of the trustee.
Jamie