Foreclosure Auction - Question(s) - Posted by saplead

Posted by JT-IN on April 18, 2007 at 14:46:36:

It makes all the difference in the world… as to the answers.

Foreclosure Auction - Question(s) - Posted by saplead

Posted by saplead on April 18, 2007 at 14:27:42:

I am considering biding on the property at the foreclosure auction.
I know the neighborhood and the market value pretty well.

I have few generic questions:

  1. Can I get title insurance on the foreclosed property?
  2. What is the most effective way to ensure that there are no liens on the property?
  3. If the auction is scheduled for May 5, is there way to buy it directly from the lender before that?
  4. If the house has PRIMARY MORTGAGE AND HOME EQUITY LOAN, How is it handled at the foreclosure? Do they just sum up two loans into one TOTAL amount as a starting bidding point?
  5. I did preliminary check and it looks like the owner transferred the deed to an LLC.
    Does this create an issue at the foreclosure auction?

Re: Foreclosure Auction - Question(s) - Posted by JT-IN

Posted by JT-IN on April 18, 2007 at 15:16:42:

  1. In most areas where I buy foreclosed property you could get title insurance… of course this is usually after you purchase the property, and then they do another title search to insure nothing else has surfaced… so it is not as clean as a straight out purchase with insurance. This will vary from state top state, and not sure in NY.

  2. Title Search by a competent professional.

  3. NO, you cannot buy anything from a Lender, that the Lender does not own. They do not own the property, just have a lien. You could buy it from the person who owns it and pay off the mtgs and liens, and that can be done usually up to the day of the sale, with some exceptions in certain areas…

  4. Depends on who (which mtg company) is bring the action. Usually if the Sr. lien is foreclosing they are doing so for that lien only, and it is up to any Jr liens to bid and protect themselves, or be foreclosed. (means they are removed from encumbering the property).

  5. That kind of a transfer may be to an investor who is trying to do the some of the same things you are discussing here… Or, it could have been a mtg taken in a personal name then later transferred to an LLC for asset protection… Hard to say. That transfer creates no problem at the auction as long as that party is named in the suit, or if the transfer is after the filing of the suit, then the transfer is moot to the foreclosure case. (Doctrine of Lis Pendens).

Get professional help before bidding at Sheriff Sale.