Any Foreclousre Specialists Out There- Need Some Questions Answered
Hi,
I have been investing in rental properties for the past 2 years now and am trying to get involved in rehabbing.
Typically i never ventured into the newspaper for foreclourse because i didn't quite understand what i was doing.
My question is in the classified section of the paper there is a legal section where they have notices of a mortgage company filing i guess a foreclousre notice towards the current mortgage holder.
Is this correct? Is this the beginning of the foreclousre process? If so what do you do next? Do you contact the bank first or talk to the current owners and ask them to sign over the deed to you and make the mortgage current?
Any and all feedback would be greatly appreciated.
Start with the property owners, they will of course tell you where they are in the foreclosure procedure. Be friendly be helpfull have a good heart and let it show. They are under big stress.
Cheers Lucius
DKNJ23:
As usual LUFOS is K-REKT!!!
Locate the homeowners and don't forget to be a GOOD LISTENER!!!
Let them tell you their story B4 you get longwinded into your magical "Get Me Your Deed and I'll Make All the Payment Worries GO AWAY"
Cuz that's what the may say in response TO YOU!!!
Instead ask them the MAGIC QUESTION:
"Mr. or Mrs. Troubled Owner...WHAY WOULD YOU LIKE TO SEE HAPPEN Regarding the Lender Trying To SELL YOUR HOME?"
This gives them the WAKE UP CALL and puts the strategy/solution burden back into their own lap.
Once you have their Answer to this (whether in detail or NO CLUE AT ALL) this is the TOOL for knowing exactly what needs to transpire in order for you to:
GET THE DEED!!!
If they don't have a clue be sincere in showing them how your taking over paying up the missed paymewnts and later paying off their loan once you sell it is a much better dolution than if the simply ALLOW their LENDER to SELL it At AUCTION!!!
Hope this Helps!
Derrick Ali
Actually, the begining of the foreclosure process for an investor is when the Lis Pendens is first filed at the courthouse. Go to the courthouse, daily if possible, and get the Lis Pendens as they come up. (Lis Pendens just means there is litigation pending against the property(pre-foreclosure)). What you do with this list of homeowners is to find out there addresses and phone numbers and start calling and mailing them information. Want to buy property from them before it is sold at the foreclosure auction(if the price is right, of course)That is where I would start. The second step is to get the monthly list of foreclosures at the courthouse a week or two before the actual auction is to be held. Thsi is all public information by the way. Then do research on the properties you want to bid on(possible mini title searches and run comps on similar properties in area). So, it basically goes like this: Pre-Foreclosure(get it from owner before the auction) , Foreclosure(auction), REO(listed with real estate agent). Either way you get it, the newspaper listings usually come out about a week or two before the auction, so the courthouse will usually have the same list about a week before that. (Lis-Pendens(litigation pending is actually filed at courthouse) being the very first step). Hope this helps.
P.S. Derrick's Magic Question Rocks!
thanks for all the input all.
SC:
THANKS for the Kudos!
and
DKNJ:
You Welcome BIG Time!!!
Derrick Ali
By law, lenders must submit three (3) foreclosure notices before the auction. Depending on the date of the auction should give you an idea of which notice it is. I don't bother personally with lis pendings, only because, you will find that half of the foreclosures get fixed. lis pendings, i feel, is too far ahead. I usually wait until i see the notice for the second time, then I will go knock on the door and work my magic.
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