Posted by Ed Copp (OH) on April 04, 2000 at 15:34:48:
Purdy, The reason you can’t enter the property is because the old owner still owns it until the sheriff sells it. It might be best to find him and buy it from him before the sale. You will see that referred to as a pre forclosure purchase. A title comapny can check out the title for you (for a fee) or you can check it yourself at the court house. Also be sure to check for federal leins (IRS). If you are not quite sure about the checking hire some help it will be money well spent. If you now have the cash you are all set, and if you do not have the cash start shopping around so that you have a source lined up for your money. Make a call to the lender who is forclosing and find out if they will sell the note to you for a discount before the sheriff sale. Make the best deal that you can. If you need help get it. Then go down to the river and catch som walleyes…ED
Posted by Ed Copp (OH) on April 04, 2000 at 13:22:29:
Purdy, It is a bit different from state to state, so it would help if we knew what state you are referring to. In my state it works like this: a lender files an action for forclosure at the court house. This is actually a “suit” for forclosure. Then there is the process of having an appraisal done on the property. The county sheriff is involved at that point and he handles getting the appraisal done. After that there begins a process of advertising for several weeks in a newspaper. The clerk of courts usually runs the ads. If there is a mistake in the ad, or the way the complaint was served, etc. this will cause a delay. After everything gets in the paper for the required number of weeks the sheriff will sell the property on the court house steps, on the day and at the time stated in the advertising. The sale is an all cash sale usually requiring 10% down on the day of the sale and the balance with delivery of the deed in 30 days or less. The money from the sheriff sale is distributed as follows first to the county tax collector for property taxes due. Then to the clerk of courts the amount due for advertising and sheriffs expenses, etc. Then to the lein holder(s). This is why the lender will often be at the sale to run the bid up to the amount owed on his mortgage note, if it can be done; so that he will hopefully get all of his money back. Often there are no bidders to the full amount of the mortgage and the lender will end up buying the house back at the sheriffs sale. This is later referred to as REO (real estate owned) by the bank or other lender. I hope that this info is helpful…ED
Ed the state is Ohio. The county Lucas. Sheriff sales came with rules, some of them I don’t quite understand.
One of the Rules. You cannot enter the premsies unless you have permission from owner. If you cannot find the owner or he will not let you in, how would you handle this? They do not quarantee clear title to property. Told to check with the title company, how do I go about this. Are sheriff sales profitable real estate investments in general. Are all liens removed or do you have to pay them off? Anything else you can help with would be appreciated. Thanks