Posted by Natalie-VA on May 27, 2009 at 14:21:06:
Thanks JT. I think I will get a title search at a minimum. Can’t hurt.
–Natalie
foreclosure sales in Florida - Posted by Natalie-VA
Posted by Natalie-VA on May 26, 2009 at 09:47:00:
Hello All,
I’ve been to a zillion foreclosure sales in my non-judicial state of Virginia. Recently I attended one in Pinellas County, Florida. I was doing a dry run for a property I’m interested in down there.
Wow, things are different!
Where I am, the lender opens up with their bid, which is either the full amount owed, or the amount they’re willing to accept.
In Florida, the lender just opens up at $100. If an investor is interested, they place a bid to see where the lender will go. There was about a dozen properties on sale that day, but investors only placed bids on two of them.
My question: If lenders open up bidding at $100, why wouldn’t investors bid on every property to see what the lender is willing to do? Anyone know?
Also, the court clerk told me that even if you buy a house where the judgment was the 1st mortgage, the property will still have liens from other mortgages. I know not to take legal advice from a court clerk, but is there any validity to what he’s saying? The one I’m interested in is a JM from a 1st. The condo assoc. and the 2nd mortgage are both named in the JM. Wouldn’t they be wiped off title if I buy at the auction for the 1st?
Thanks to anyone who knows…
–Natalie
always a RISK buying at auction - Posted by steve
Posted by steve on June 03, 2009 at 19:42:37:
recommend you try to buy as an REO after the auction. Then title is CLEAN and usually cheaper than auction price.
Be on notice that many Florida counties are now doing their auctions on-line.
Re: foreclosure sales in Florida - Posted by thutch fl
Posted by thutch fl on May 26, 2009 at 21:09:27:
Most times the attorney for the bank will tell everyone ahead of time what they are willing to bid. The sharks, I mean pros, know which guys represent which banks and just go ask ahead of time.
The clerk was absolutely wrong. That is why seconds will sell for pennies on a short sale. They know there is a good chance that they will get nothing.
Also, I am pretty sure you cannot do what JT suggests. Title company will not issue title insurance unless you trasferred to another entity after the sale.
Also, know that if you are the winning bidder you do not take title for 10 days.
Re: foreclosure sales in Florida - Posted by JT-IN
Posted by JT-IN on May 26, 2009 at 13:55:10:
Every county varies slightly, but ever sale that I have attended in FL the Plaintiff bids the $ 100, and if there is another interested bidding party, they simply ask where the Plaintiff is going to bid to…? Then the P states the max amount, and if it is above what someone would bid to, then the $ 100 bid stands. If not, then the 3rd party or other secured bidder then bids, and that either stands as the high bid or it is outbid by another bid, etc.
As to the title question asked of the clerk, they have to make such statements so as to not be held liable in case anything remains following the sale. What I would recommend, especially since you are bidding on ONE SPECIFIC property, is to have a preliminary title opinion… based on the completion of the foreclosure sale being proper…? In other words, that title co would agree to issue you a binder on the property IF you were the high bidder. You may end up spending a few hundred on a property that you don’t end up buying, but much better than buying one and then learning that there is a 50K problem. Likely the title is clean without any issue, but best to be safe than…
Re: always a RISK buying at auction - Posted by Natalie-VA
Posted by Natalie-VA on June 04, 2009 at 06:25:02:
Thanks for the tip on the online auctions. I’ll have to check that out for future stuff.
By the time this property gets to REO, it might have other interested parties. I prefer to try and beat the competition. In my area, REOs have more bidders than the actual auctions
I’ve ordered a title search on the property and will proceed accordingly. Thanks for your comments.
–Natalie
Re: foreclosure sales in Florida - Posted by Natalie-VA
Posted by Natalie-VA on May 27, 2009 at 14:23:51:
Thanks Todd. I think I know which guy will be the lender rep for mine, based on the sale I went to. If he won’t say, or isn’t the right person, should I do like JT says and ask (during the auction) where the lender is willing to go, or should I just bid? Things seemed to move pretty quickly and I don’t want to miss something.
Do they give the cert. of title to me the next day when I pay up, or do they keep it and send it for recording?
–Natalie
Clarification on prior suggestion - Posted by JT-IN
Posted by JT-IN on May 27, 2009 at 06:05:52:
I am NOT suggesting that a title co will issue a title policy prior to recordation of the certificate of title in FL., following a foreclosure purchase. In fact they will not do so.
What I did say is this…
- Contact a Title Atty that operates in the county in FL that the subject property is located.
- Contract with them for a title exam, subject to the foreclosure being completed as planned. This means that in addition to the chain of title for 40 or 60 years back, they will also examine the pending foreclosure case to ensure that ALL parties having an interest in the property currently have been properly placed on notice. This meaning that IF the foreclosure process is carried out as scheduled and planned, meaning the sale held on the date it is advertised, all advertising and notices completed according to law, etc., that the title WILL BE clear once the Cert of Title is issued and recorded.
- Obtain a binder (or guaranteed statement) from the title agency that provided that the sale occurs and is completed as planned, that the agency will issue a title policy following the successful recording of the Cert of Title, appx 10 days following the sale.
- Once the C of T is recorded, then obtain the title policy.
- Absent a title policy, you can purchase a guaranteed opinion of title from an Atty, which is in effect the Atty stating that the title is clear in his opinion, and he will defend same in the event of a title flaw. The only thing NOT covered by a “guaranteed opinion of title” is fraud, such a prior spouse forging the name in a prior deed, which would otherwise be covered by a title policy. You may save some money with this approach vs. the title policy, but have somewhat less coverage. However, in most cases this approach will do the intended purpose, absent the fraud. (I have used this approach on the order of 50+ properties purchased at sheriff sale… however only a couple of those being in FL).