Posted by Stew(NE) on November 25, 2000 at 19:53:11:
I also invest in foreclosure property. I have been through the entire process and have purchased a property. Everything you stated looks good and it is what occurs in a Deed of Trust situaution. However, I don’t think the owner loses all rights until after the sale. In my tombstones (legal listing in the paper) it always gives the owner the right to make up all payments on the day of the foreclosure. Everyone else bring cash. Here is one pointer, if you want to invest in this area, get to know or find a friend in a title company. You can always pay for a title search (about $50 in my state), but this would add up after a while. If you do at least one property where you buy a policy and you do most of the research at the Registar Office, sometime you can find a sympathic ear in the title company that can double check your work. For example, I did all my research on a property and the Deed of Trust and tombstone had the husband and wife listed as the owners of the property. My friend at the title company check my work and found out that there had been a divorce and the property had been quit-claim to the husband. However, it wasn’t recorded. Guess why? In the divorce settlement, if the spouse didn’t record a quit-claim to the husband after 30 days it automatically becames his. So I didn’t waste time talking to the spouse. Well, my son and I just finished putting a new fence on the deck of the foreclosed property I bought. Renter moves in on Monday with automatic deposit payments.
I was posting a bit ago about going over to the recorder of deeds office across from my work whenever I have the chance to do so. I have discovered two types of documents that I believe the pros look for when investigating foreclosures at any stage. One is called the “trustees sales deed”, which states that a trustee sold a property to the highest bidder after the people (grantors) defaulted on their loan and lost the house. Almost all of the “trustees sales deeds” I have seen ended up specifying the lender as the owner of the property because no one bid on it or didnt bid high enough to cover the outstanding mortgage balance. Then the property is often listed for sale by a realtor. However, I have driven by some that are not listed and are vacant. What do you think is up with these? Is there any feasibility in writing or calling these lenders and offering to buy the house? Most of these lenders that take back the properties are out of state lenders…
The other document I have found is called a “request for notice of sale” or something to that effect. This is when (I think) a lender is requesting that notice is being given that the grantees have defaulted and that their property will be sold. I believe that a county appointed trustee is responsible for giving notice that a property is for sale. My question is, is this considered a “pre-foreclosure” property? One where I can easily tell who the owner is and then call or write them and offer them a solution to help them out of their pending foreclosure? I do know that there is a 20 day notice given to property owners that unless they make up their payments then their house will be sold. I am not sure how this fits in here, but maybe some of the pros here can help me. The “request for notice” documents are always signed by someone from whatever lending institution is making the request. I believe what happens here is that after the county receives a “request for notice of sale” from a lender, the county sends out a notice to the property owner that they are in default and that they have 20 days (in my state or county anyway) to respond, and if they dont, then their house is then taken back by the trustee and then a sales date is given and published in a local legal newspaper. I believe that when they dont respond or make the payments within that 20 day period then the owners lose all rights to their property. Can anyone verify this or offer me pointers in this area?
thanks in advance for any responses! Hope everyone had a good Thanksgiving!
Dan
Yes the notice sounds like the start of the “official” foreclosure process. Why don’t you just go to the county office that sends these out and ask them what the procedure is and what the state statutues are???
Also, the lender doesn’t “take the house” until some time after the sale, and also possibly after any redemption period, and then if anyone is still living in it they have to evict them.