Posted by Natalie-VA on September 12, 2005 at 13:54:27:
Rocky Mtn Girl,
My husband and I have been investing full-time for 6 years. Our primary focus is to rehab and retail, but we also hold a few rentals.
Good luck in your research!
–Natalie
public trustee explanation-long - Posted by Rocky Mtn Girl
Posted by Rocky Mtn Girl on September 08, 2005 at 17:46:01:
Hello,
I am finding many abandoned/ugly houses in my city. When I do research on them, I find a lot of them are also in foreclosure.
What is confusing to me is what is happening with the property in regards to information on the assesssor’s and public trustee’s websites.
Example 1: A house in foreclosure currently owned by one person-but the borrower is someone else. Who is getting foreclosed on: The current owner or the borrower. The current owner is an investor in my town.
This is from a real life file at the assessor’s site-the names have been changed to protect.
Example 2:
April 2004
Grantor : bob homeowner
Grantee : john homeowner
Warranty Deed-Paid $225k
April 2005
Grantor : john homeowner
Grantee : abc llc
Warranty Deed
August , 2005
Grantor : john homeowner Rec#XXXXXXX
Grantee : 123 LLC
Foreclosure-Public Trustee Deed
August xx, 2005
Grantee : xxx LLC
Grantor : 123 LLC
Quit claim deed
September, 2005
Grantee : larry homeowner Paid 400,000.00
Grantor : xxx LLC
Warranty deed
We had found this property driving in the city and talked to
the woman of 123 llc before the foreclosure and she said the price was 300k. This was a big house-built in the 1800’s. A gut job with asbestos siding and structural work, easily 60-100k rehab. xxx llc and abc llc are incorporated for the same people.
My questions is: What took place in this whole set of transactions. Did John Homeowner quit claim his house and still get foreclosed on?
I am just confused by all this and talking to the public trustee employees and they can’t give much insight other than certain investor (meaning the ones with the multiple llc’s are under investigation by the DA)
Is this normal for preforeclosure houses or am I just missing something major here. I realize there is great opportunity but I don’t want to be a shark.
Any insight would be greatly appreciated.
public - Posted by Nike
Posted by Nike on September 09, 2005 at 10:57:39:
What state are you in? Homeowner provided abc llc with a Warranty Deed (not a Quit Claim Deed). Then in August it was foreclosed on–it looks like 123 llc bought at auction (Trustee’s Deed)- then transferred to xxx llc.
Do you know whether 123 llc is owned by the owners of abc and xxx?
Yes- this happens—some folks on this board are fond of advising others to get the deed–then try to work a deal with the bank, or find a third-party to assign to and if they can’t make a deal then they just walk-away. It’s a lousy way to do business but it happens.
Re: public trustee explanation-long - Posted by Natalie-VA
Posted by Natalie-VA on September 09, 2005 at 08:27:37:
Rocky Mtn Girl,
I don’t know what’s going on with example #2, but In example #1, the house is being foreclosed on; not the people. It doesn’t matter who owns it…the loan is not being paid. My guess is that the current investor owner bought it “subject to” the former owner’s financing. Then, for whatever reason, didn’t keep the payments up. Just a guess.
–Natalie
Re: public - Posted by Rocky Mtn Girl
Posted by Rocky Mtn Girl on September 10, 2005 at 24:01:57:
Thanks for the reply.
The 123 llc was a property management firm-her husband had a real estate firm.
I am in Colorado.
It does not show that any money changed hands when they received a trustee deed. So I am guessing that is what happened. They got him to sign over deed and then got a trustee deed after the foreclosure??Still confused-I am
having a hard time getting motivated homeowners like that.
What I am running into is houses controlled by investors with trashed houses and wanting blue sky and beyond for purchase price.
Oh, well. Will just keep plugging along and try to get a better understanding of foreclosures.
Thanks again for your time and consideration.
Re: public trustee explanation-long - Posted by Rocky Mtn Girl
Posted by Rocky Mtn Girl on September 10, 2005 at 24:05:11:
Natalie,
Thank you for your reply.
I have a sister named Natalie, also.
I have seen your name in the posts quite a few times.
How long have you been involved in CRE and what is the main focus of your business?
I am still confused with all the public trustee website info but will keep getting educated.
Thanks for your time and consideration.
Re: public - Posted by Nike
Posted by Nike on September 10, 2005 at 08:37:05:
If 123 llc bought at auction then money changed hands otherwise they wouldn’t have the deed. Homeowner’s and abc’s interests were foreclosed—123 llc is the new owner. They then transferred to xxx llc.
I don’t know your local foreclosure law but I’m sure you can find a summary online. If you want in-depth knowledge of how the process works you should contact the state Bar association and ask for information on who provides continuing legal education for local attorneys and I’m sure they have a practice manual for real estate law in general and foreclosure law in particular. Good luck.