Shouldn’t be bidding at Sheriff Sale - Posted by JT-IN
Posted by JT-IN on April 23, 2006 at 08:48:19:
Until you pretty well understand items that effect title, how they are expunged in a Sheriff Sale, and what effect occurs when those items are missed in the suit, by the Plaintiff’s Atty, and if so, what is your recourse. If you can’t stand the risk of the recourse, or lack of it, then that should be factored into your strategy, as KNOWN info.
Sure, you could have title co perform a search for you… giving you a PJR, preliminary judicial report. If you are talking about a one time, once case incident here… where you are interested in the neighbors house, title co does a PJR, you bid with confidence, and either buy it or not… at the sale. I guess that would work for a one time situation. However, for those that plan on making sh sales their business, they NEED to KNOW for themsleves, what effects title, and how. Anything short of that is just plain playing roulette. Odds are 38-1 on roulette, not exactly what I call a calculated investment strategy.
Let me tell you a little story here… I have friends who have been buying at Sh sales for years, as I have. Recently K. bought a property, and did not advance work on the title. He relied on the Atty who rep the Plaintiff, to have known what he was doing. (Joe K., listen up here). He checked the file, looked at the Atty title work, Atty served all the parties mentioned in the report. He did not do his own search. Problem was, this was the Atty FIRST FORECLOSURE CASE, EVER. He did not evaluate title correctly, and missed serving a number of State Tax Liens, as well as a Fed’l Tax Lien. Sale occurs, K. buys the property, Atty confirms sale, and Kevin is happy. Until he goes to apply for financing… Guess what, $ 6500 in Fed’l Tax liens, and more than that in state tax liens… I gues the only good news here is that the liens weren’t larger than they are… K. and I have had this discussion a number of times, he has had some near misses, due to being careless, and he has just blown it off. He just lost at the Roulette game…
So my opinion is this, if you don’t know, then learn before you get your funds invested into the high-odds game of Sh Sales… We are all too anxious to run off and bid, get a deal, etc., but the proper way to proceed is to learn what effects the title before you get in the game.
Just the way that I view things…