Posted by JT-IN on January 27, 2002 at 18:17:10:
“first auction purchase and he discovered a few surprises”…
It is best to “totally” understand the perameters of forelosure, including timetables of Attorney’s and what rights the former owner has to occupy/vacate the premises.
The answer to which will vary greatly from state to state, but the important part is, to factor into the deal any of these costs, such as interest or evicitons. Many “new to foreclosure investors” tend to overlook or minimize some of the small issues, which become the difference between a good buy, and a so-so buy. I wish I were more familiar with MD law, to sight you specifics as to timetables there. I could do so locally, but that is of no value to the conversation.
In the case with dealing with law firms, it is best after knowing the expected time frames, to track each step of the way, intil completed. I usually will be in touch by phone with the Law Firm, to discuss any small delays, before they become huge delays. The (polite) squeaky wheel gets the oil… and the necessary legal paperwork.
With respect to tenants and occupancy, they are permitted so much time to vacate following the sale. Many new investors feel that the homeowner wouldn’t lie to them, (tee-hee). So what I do is, once the time for serving the notice has come, (even if a completely amicable relationship with the owner), I tell the owner that by law, I must submit this paperwork, serving them an eviction notice. This way they expect it, but it also officially starts the clock ticking, and saves much wasted time later…
Foreclosure is like any other process, it must be managed, and the closer it is, the more money it will save you.
Just the way that I view things…