Buying a forclosure at the courthouse

Comments(9)

• 
  jorge12118th June, 2003

  Todd:
  
  not sure what you are asking from your post. What do you mean you upset a bid? Please explain.

• 
  todd118th June, 2003

  When a forclosure is sold, anyone usually has ten days to make an offer of 5% more to purchase the property that was sold.

• 
  todd118th June, 2003

  I was really just wandering if there was a way to protect myself from any liens that might be attached to this property?

• 
  AKlein19th June, 2003

  The usual way to protect yourself is to research the property BEFORE you make a bid. Liens are matters of public record. Check with city hall or the county offices, whichever applies. Most people working in those offices will be glad to help you. (Some of them will be glad to throw you out, but there's always someone who'll show you how to research a property.)

• 
  newinvestor19th June, 2003

  I would think that at this point that the title co would not issue title insurance.
  good luck and i hope you don't have any other liens!

• 
  todd120th June, 2003

  Thanks for your ideas.
  Will the courthouse know or be able to point me in the direction to find who the senior mortgage holder is?

• 
  DaveT20th June, 2003

  Quote:Yesterday I upset a bid on a forclosure that was made by a bank.
  I had a friend question me , why would the bank have an interest in this property and what if there was a senior mortgage?
  My question is, how can I protect my interest,"title insurance"?or what can I do to only pay what I have bid?
  todd1,
  
  Upset bid sales only happen after a foreclosure sale has occurred. The foreclosure has already wiped out any junior liens. The bank was the foreclosing note holder, and they won the foreclosure sale auction. Your "upset" bid was higher than the bank's bid, so in effect you become the winning bidder. The bank's lien is also released when you go to the settlement table. Assuming the foreclosing note was the senior lien, you don't have anything to worry about. If the foreclosing note was a junior lien, then your bid may be "Subject To" any senior liens. This often happens when the homeowner's association forecloses on their lien for unpaid dues, subject to a lender's superior mortgage note.
  
  You still want to purchase title insurance just in case some undiscovered fault in the foreclosure process opens the door to a claim against the property.

• 
  todd120th June, 2003

  Thanks for all your appreciated help,
  Todd1

• 
  RALPHN50424th June, 2003

  ZERO COUPON BONDS IN EXCHANGE FOR THE EQUITY IN A SHORT SALE? ANYBODY HAD ANY EXPERIENCE WITH ZERO COUPON BONDS? THANKS?