Buying at the Courthouse... exerienced only:)
I've bought lots of preforeclosures, REO's, and several auctions, but never from the county foreclosure auction.
I've heard that if you buy at the county foreclosure auction, the owner still has up to 21 days to still get the home out of foreclosure process. That means I could buy it today, write a check and 21 days later lose the sale because the owner found a way to get it back?
After it is foreclosed on and I purchase it from the courthouse... can the owner still negotiate with the bank to get it back????
What are the details on this????
Hi davidtrue,
There maybe some truth in your statement depending upon your state's laws regarding foreclosures and trustee sales.
Each county and state has different laws so you might have that redemption period.
You will need to check it out.
Since you didn't say where you live, I can't say if you have that situation or not.
Best of luck
John (LV)
In Ohio, the previous owner has until the CONFIRMATION OF SALE is received and filed at the county clerk's office. This document needs to be signed by a judge and approved by the attorneys and sheriff. I purchased a property at auction on February 14th at the Franklin County auction and waited until March 23rd for the initial confirmation -- which was incorrect according to the sheriff. I still have not received the revised confirmation. So it can be more than 21 days in some jurisdications (I believe that number may be up to six months in Michigan -- see previous posts on Sheriff sales). The unfortunate thing about Ohio is that there is no interest being earned on the purchase price or deposit. So you risk your capital being tied up for a long time for no reason (expensive).
Although, sometimes it can be worth it. I got very lucky with my first deal. Good luck!
Excellent advice. It seems that it could be true that and its not a 100% guaranteed that once you purchase a property from the courthouse it becomes yours.
I'm an investor in Palm Beach County Florida... the hotspot for investors
Who would be the person in charge of getting me the legalalities at the courthouse? Would it be the sheriff or judge????
Not sure what you mean by who is in charge of getting you the legalities at the courthouse.
Plaintiff's Attorney - Initiates the confirmation of sale document
County Prosecutor - confirms that the confirmation of sale document is correct
Sheriff - confirms that the confirmation of sale document is correct
Judge - Signs the confirmation
Clerk - Posts the confirmation and delivers it to the sheriff
Sheriff - Releases proceeds to the parties listed on the confirmation and creates the deed for the buyer
Clerk - records the new deed
As an example, I just got the deed on the property I described above today. That is a three month lag from when I bought it at the sale to getting the deed.
in michigan if you by at the court house 1 of three four things will happen. 1 you will take possion in 30 days if convayed as vacated. 2 will take possion in 6 months if occupied and there is less than 3 acres. 3. will take possion in 12 months if occupied and over 3 acres. and the last thing that may happen the owner may redeem the property with in the time 1,2or3 obove said but must pay all cost fileing,titlework also pay interest in the amount of what the bank was charging the owners.
Wow.... If I only new my stuff like you do.
Thats amazing how detailed you are in knowing all these things.
Let me ask though... lets say the home is valued at 100,000 and the homeowner owes 60,000 and act auction at the courthouse jsut sold the property for 70,000 and I bought it.
Couldn't another investor go to the homeowner and say "Hey, your going to be out on the street, your credit going to get distroyed, because your home was just sold at the courhouse today. Sign the deed over to me and give me authority to work with the bank, and I'll save you from being foreclosed on, pay off your 60,000 morgage and give you 5,000 cash so that you can pay to move and rent a place for a while.
Then investor #2 can get the property for 65,000 total, when investor 1 already committed to pay 70,000 at the courthouse.
Can this happen, if so how can it be stopped?
The owner has been warned and told many times before the house is sold at auction like this.
As far as I know -- it can't be stopped.
Although, at that point -- the homeowner's only option to redeem is to pay the full amount of the foreclosure judgement (which includes the mortgage balance, legal fees, accrued interest and penalties). That $60,000 balance by now is more like $80,000. Since the foreclosure has already been decreed, his credit is blown anyway, so you are no savior there. And investor #1 will get his $$ back if the confirmation doesn't go through.