actually, the owner has up to 30 days b4 the auction starts to redeem the loan, or file for bankruptcy to stall the process, usually in NC, and Charlotte for that matter, the judge always sides with the banks, we’re a huge banking city. so 99% of the time, the judge allows the auction to continue even though the owner files for bankruptcy
First I would like to thank the people of this site for everyting. I stumbled across it in 1997 shortly after getting my first computer, went to the Convention in Las Vegas and started investing so much that I haven’t been able to get on line and read this stuff anymore. Now I’m thirsting for more knowledge.
I want to buy a duplex that has been foreclosed on in N.C. The auction is being held at the courthouse October 10, 2001. My question is does the owner that was foreclosed on have a certain time period that he could still make good on the debt and get the property back?(If so I would like to deal with him and avoid the bidding fever) Or am I stuck going to the auction and bidding on this? I have never dealt with foreclosures and would like to learn more about them. The duplex is worth about $80,000 and the governments interest in it is only $21,000.
Thanks for the help and thanks for the knowledge that has allowed me to aquire 21 rental properties so far.
NC is a judicial foreclosure state. Go to the courthouse and read the foreclosure case file. In it you will see who was notified of the sale. This should be the other lienholders on the property. Then check the title in the land records office. See if there are other lienholders there. Check in the tax collector or treasurer’s office for delinquent taxes. They will remain on the property, the responsibility of the new owner.
Now you should be able to see if this is a first loan or a junior loan on the property. You can see if it is a good deal or not.
You can still approach the owner about buying and then paying the delinquency once you are the owner. You will know what the loan situation is so can make an intelligent investment.
You are now an experienced investor so moving into foreclosures could well make sense for you. I advise beginners to steer clear of them until they are as experienced as… well, as experienced as you are.
Posted by Tarheel T on September 06, 2001 at 11:48:26:
Greg, Be prepared to be disappointed. A duplex worth 80,000 will NOT sell on the steps for 21,000. Usually what happens is that there are MANY more leins on the prop than it is worth, and the bidding starts out above or close to its fmv. If not be sure of the priority of the lein that your bidding on. It may be a second. Call the trustee the day before the sale to find out what the opening bid will be, but before that get the title checked.
it is 10 days after the auction that the owner has the right to make an upset bid, or anyone else for that matter. after that, its all yours if you win, there’s no right of redemption period in NC. I’m pretty familiar with the process since im in NC also…
Posted by NCPaul on September 05, 2001 at 21:42:07:
First of all, check everything I say with an attorney before you take it to heart. Now having said that, I think the owner in forclosure has a 10 day period to upset your winning bid after the sale. Something you may find interesting is that often the only people at the foreclosure sale are the trustee handling the foreclosure and his assistants listening to him read everything. You may have an easier time negotiating directly with the bank foreclosing on the property. If you want find out how to make a good profit helping people with their foreclosures by buying the property and moving the asset check with David Buter on the Paper & Notes forum-this site.