Is this true? - Posted by John


#1

Posted by Bill Gatten on March 02, 1999 at 12:05:53:

Proof reading is a good thing.

b


#2

Is this true? - Posted by John

Posted by John on February 28, 1999 at 23:06:14:

I’ve been out of the real estate biz for years now, but recently I ran across this at an MSN website
( http://moneycentral.msn.com/articles/homemort/invest/1498.asp )


"Foreclosures
Call the local courthouse and find out the name of the legal paper for the area. This newspaper should carry the advertisements required by law for auctions, sheriff’s sales, and foreclosures.

Up to the date of sale, you can negotiate directly with the owners. You can inspect the premises, sign a contract and get financing. You also can wait until an auction to try to get the property as is. Pass a credit check before you bid and get financing fast."


My experiences of years past were that once a property is advertised by the county sherrif, it was more or less a done deal. It was to late for the owners being foreclosed upon to enter into any meaningful strategy to sell the property (I’ve been told by lenders, in effect, the property has been advertised…if you want it, show up at the sale…)…!

Is the website correct (have things changed) or have they stretched the limits of truth? Any true to life experiences out there?


#3

Re: Is this true? - Posted by bill Gatten

Posted by bill Gatten on March 02, 1999 at 11:30:55:

Before you bring a foreclosure current, be sure to get a Reinstatement Letter from the lender, or they can (and will) take your money and apply it to principal and continue with the foreclosure.

I acquired a $450K property in foreclsoure (with a $150K loan against it) 3 years ago and, to bail the property out, we sent Countrywide Funding $35,000. They thanked us, applied it to principal and continued with the foreclsoure.

About two weeks ago we got a judgement against them and now own the property (until we are two seconds late on the payment). The only thing that saved us was that for the time we were suing them, they keop accepting our monthly payments: otherwise we would be out’s luck.

Get a letter before you send money!!

Bill


#4

Yes - Posted by John Behle

Posted by John Behle on March 01, 1999 at 13:19:16:

The owner owns the home until the point of sale and can always pay off the lender up until that time. In some cases, there is a right of redemption that extends beyond the sale.

It is the lender’s policies that determine whether they will “re-instate” the loan after the advertising period. Even if they have a policy that they will not, I’ve still had them do it. Generally they do not want the property back. At the same time, I have seen lenders totally give the owner the run around because they do not want them to re-instate the loan.

We have re-instated loans up until 60 seconds before the sale.


#5

Re: Is this true? - Posted by Sue (NC)

Posted by Sue (NC) on March 01, 1999 at 08:13:36:

If you have financing lined up ahead of time, and can close in hours or days, this is entirely possible. The owner can redeem his property in most cases right up until the sale time (perhaps with your funds), and then sell to you. In NC, there is also a 10 day upset period, allowing the seller another 10 days to reinstate or pay off his mortgage.

But you better have rock solid financing AND a good lawyer/title company so that you can meet the deadlines- especially if any of your own money is on the table.


#6

Re: Is this true? - Posted by Ben

Posted by Ben on March 01, 1999 at 07:00:48:

This may vary from state to state but in NJ, the
property owner has until the day of final judgment
to pay off the lien. I have seen the courts bend over
backwards to accomodate property owners in foreclosure
by allowing them to vacate the judgment months afterwards, etc. The courts are loathe to see people lose their homes on some technicality, so my guess is that this is true.