Sherrif's auctions - Posted by Steve (OH)

Posted by Lee on September 27, 1999 at 20:04:25:

From my experience, “they” will insure a title UP TO THE PURCHACE PRICE ONLY, no more.
AKA any improvements or repairs are at your financial risk!

Lee

Sherrif’s auctions - Posted by Steve (OH)

Posted by Steve (OH) on September 27, 1999 at 13:46:29:

I am in the process of finding some properties to rehab and one of the options is sherriff auctions. One of the local business publications lists all of the auctions for the following week (as most large cities have…I assume). Since the owner of the home is listed in the paper, what is stopping an investor such as myself from contacting them directly and making them an offer to help them stop the auction? Due dilligence can be completed via the couthouse to assure no large liens, etc. prior to the offer. Am I off base here?

Thanks

Re: Sherrif’s auctions - Posted by Glenn

Posted by Glenn on September 28, 1999 at 11:45:25:

Steve

We recently bought our house this way. We had lawyer advise, and a title search done ahead (to be able to get title insurance). I our county in OH, (Greene) to clerk of court records are on computer now, so you should be able to check with the clerk to try to find just filed foreclosures. Try redeeming long before the auction, when a smaller $ amount may be needed.

Re: Sheriff’s auctions - Posted by Irwin

Posted by Irwin on September 27, 1999 at 21:14:07:

Nothing at all stops an investor from dealing with the owner prior to the sale. That’s why investors (some of them with millions to invest) do exactly that. One thing you can count on is that you’ll be competing with well healed pros. Suggestion: Buy a good foreclosure course like Joe Kaiser’s TOTALLY DOMINATE YOUR FORECLOSURE MARKET (I don’t get referal fees). It will explain the basics of how the business works in the real world, and give you some pointers on how to play the game.

Re: Sherrif’s auctions - Posted by Mark Mallen

Posted by Mark Mallen on September 27, 1999 at 14:24:54:

Steve, another option is to contact the first mortgage holder if it is a local bank. I have found that you can occasionally get great terms and price from a bank after the sale. You also have less hassles and get to see the inside of the property if it is vacant.

Re: Sherrif’s auctions - Posted by ScottE

Posted by ScottE on September 27, 1999 at 13:58:12:

Steve,
You have the right idea. In many cases you won’t want the property sold at Sheriff’s sale, especially if it’s a good deal. You run the risk of getting into a bidding war with what I call a ‘lazy’ investor. Lazy investors do some work (or have someone do it for them) making sure the property is encumbered the way they thought it was, then just show up every week at the courthouse for the sale. If you’ll put forth the effort to track the owners down prior to the sale(on lucrative properties, of course) then you can garner some good deals.
Also, get familiar with what redemption period there may or may not be in your state. This could allow you to get with the owner after the sale and still work a good deal thereby cutting off the winning bidder at the sale.
It should be noted that foreclosures are not the best avenue for beginners and you should have a qualified RE attorney at your side to help you with all of the potential pitfalls.

Good Luck

Scott

Re: Sherrif’s auctions - Posted by Steve (OH)

Posted by Steve (OH) on September 27, 1999 at 14:51:07:

Mark, thanks for your response. Question: What do you mean great terms/price from the bank AFTER the sale? You mean if I “win” the auction, the bank may refinance the other person’s loan and I will take it over? If I am not the winner, how am I contacting the bank…if someone else won?

Thanks again.

Re: Sherrif’s auctions - Posted by Steve (OH)

Posted by Steve (OH) on September 27, 1999 at 14:53:59:

Thanks for the response, Scott. Couple of questions:

What is a “redemption period?” How can I cut off the winning bidder AFTER the sale? Why do I need an attorney by my side if I will assure no large liens and get title insurance (if I use cash), and probably have an attorney at the closing if I finance?

Thanks.

Re: Sherrif’s auctions - Posted by ScottE

Posted by ScottE on September 27, 1999 at 15:47:50:

Steve,

In many states there is a redemption period ranging anywhere from zero days to 180 days(perhaps more, I’m not a lawyer). Check with your local attorney for your situation. This is the period AFTER the sale, but before ‘confirmation’ of the sale. During this period, the homeowner can pay ALL of the balance owed, plus arrearages, fees, and costs and ‘redeem’ the property.

Now, if there is a redemption period where you are, you can get to the homeowner, have him deed you the property (or put it under contract to buy) subject to the existing mortgage(s). It is vitally important to get the abstracting done correctly so as to not miss ANY liens!

If someone else bid on the property, you can just redeem it during the redemption period and shut out that winning bidder.

As for using an attorney, I know of few situations in RE where you can get burned to a crisp as you can working with foreclosures. You need someone who knows the local laws and can deal with any problems that come up. You wouldn’t have a gardener do brain surgery on you, no matter how much he had read about it, would you? Then why would you attempt a stinkin’ mess like a foreclosure without an expert? (At least for the first couple hundred!)

Good luck!
Scott

P.S. Maybe I read it wrong, but you do get title insurance on EVERY property you buy, right?