Trustee's Sale! - Posted by Pete

import · August 22, 2001, 12:06pm

Posted by Ronald * Starr on August 23, 2001 at 12:51:48:

Rob----

Thanks for the suggestion.

I wrote a book on trustee’s sales in CA with John Beck in 1985. Neither of us sells that book anymore. I see the name on Half.com, so I guess occasionally some purchaser of the book resells it.

Foreclosure sales are state-specific as to the laws, although some of the techniques are general.

I think the market for such a book might be too small to justify writing it. Although it probably would sell a lot better than other topics in real estate investment.

Good InvestingRon Starr**

import · August 22, 2001, 12:06pm

Trustee’s Sale! - Posted by Pete

Posted by Pete on August 22, 2001 at 12:06:45:

Hello everyone,

I have found an excellent property with a substantial amount of equity. I have two problems: The first is that it is going to Trustee’s Sale tomorrow. The next is that I have little money and can’t get hold of the owners. This situation has been plaguing me in the last few months and many properties that should have been mine were lost. Does anyone have any suggestions?

Pete

import · August 22, 2001, 9:23pm

Re: Trustee’s Sale! - Posted by Rob

Posted by Rob on August 22, 2001 at 21:23:04:

Ron is right about that. You lack the experience. This game could be a very tricky process, unless you know for sure that it is a first. But then again, you may not get the property if you have the money, because the savvy investors would all be there to bid against you. Believe me, if they are the true T.S. investors, they have a lot of money, and information about the property.

Do go there to watch and learn. YOu will pick up a couple of tips here, or there. Maybe in the near future.

Rob

P.S. Ron, you should be writing a book about this.

import · August 22, 2001, 9:07pm

Re: Trustee’s Sale! - Posted by Ronald * Starr

Posted by Ronald * Starr on August 22, 2001 at 21:07:41:

Pete----

Stop noticing trustee sales properties. You are not prepared to work with this kind of property.

Foreclosure sales require, in my opinion, a lot of Money, Knowledge, Guts, and Time. When you are a few years along, you may have more of these requirements. Meantime, ignore these properties.

Notice when they go to sell. If they are sold to the beneficiary --find out by asking the trustee or from the trustee’s sale service–shot them a short offer the same day or the next day. Or call them up and ask if they are interested in an offer to purchase. If these are VA-guaranteed or HUD-insured houses, ignore them completely. They have to go through the beauracratic process and then will we offered at market value to the public through real estate brokers.

Good Investing*******Ron Starr***********

import · August 22, 2001, 9:55pm

Response to your P.S. - Posted by Ronald * Starr

Posted by Ronald * Starr on August 22, 2001 at 21:55:51:

Rob----------

Writing a book about what? Discouraging beginners from foreclosure sales?

Good Investing and Good Posting

import · August 23, 2001, 10:47am

Re: Trustee’s Sale! - Posted by JeffR

Posted by JeffR on August 23, 2001 at 10:47:23:

Ron, I am also new and felt I was not ready both financially nor experienced enough to bid at a Trutee’s sale. I do have good info from a title company on homes that have had a NOD filed. I plan to solicit these people hoping to find motivated sellers looking to get out of there financial bind. I feel this is a different area then buying on the court house steps. Your thoughts or recommendations to a novice investor would be appreciated.
Thank You
JeffR

import · August 22, 2001, 10:48pm

No, Trustee Sales- nt. - Posted by Rob

Posted by Rob on August 22, 2001 at 22:48:28:

Nt

import · August 23, 2001, 2:50pm

Re: Trustee’s Sale! - Posted by Ronald * Starr

Posted by Ronald * Starr on August 23, 2001 at 14:50:05:

Jeff R----

Yes, you’re right, buying from owners facing foreclosure is pretty much like buying from any other owner. You can take it through an escrow, you can have title insurance, you can have disclosures by the seller, you can have inspections by contractors, roofers, termite inspectors, etc.

In that way this way of buying is far safer than buying on the “courthouse steps,” as you put it.

However, depending upon the state in which you do this, there may be some special laws relating to what you can say and do with the owners. You do not say in what state you are. However, you are in a trust deed state and the title company helps you out. That sounds like CA to me.

In CA there are specific laws regulating the types of deals one can make with a homeowner-occupant when they have had a notice of default filed against their property and the property is a residential property of 4 or fewer units. Study the law carefully. There are severe penalties for those found in a trial to have violated these special laws and done things the “normal way.”

When the real estate market is hot, one will find few property owners who are in default who will sell for a bargain price. Many will list the property for sale with a real estate brokerage. The property will sell promptly, and before the foreclosure sale the property will be owned by somebody else, with the old, defaulted loan probably paid off. If not paid off, taken over subject and thus not pressing the owner to sell.

But whenever you try to buy bargains you will find it difficult. There is no easy way to get bargains, as far as I know. If there is, those who know about it have not been making it public. So, if you want to check out the pre-foreclosure approach to buying bargains, give it a try. Maybe you have the touch. I once met somebody who made a great deal on the very first defaulted house upon which he knocked on the door. He continued in the business for a years thereafter.

Good InvestingRon Starr*********