Comprehensive FAQ For Pre/Foreclosures?
Hi Everyone, First Post, Done the Reading, read some more, and searched a few times, I just didn't see the answers.
I've read the FAQ. Even bought a course on short sales, but it was glossed over to put it mildly with no answer there.
I've got a bunch of questions about the foreclosure process here in Florida.
I've been thinking about hiring a real estate lawyer, but I figured I would save the money and ask you wizards first.
Please help if you can.
From my understanding, We have a redemption period and use judicial foreclosure procedures.
1. Whats the difference between judicial foreclosure and non-judicial foreclosures?
a. What's the drawbacks and benefits of each type?
2. When negotiating a deal with someone in the preforeclosure period (prior to actual foreclosure sale, but the sales date has already been posted) how can you protect your interest (ie control the seller and the deal) and your investment of time in the deal, if the day/week after they accept a discounted sales contract subject to lenders acceptance, they sell it to another investor that offers them a better deal with more uhaul money? Any recourse? How about if 30 days later their rich aunt/investor loans them the money during the redemption period to get the house back, wont I need something to protect my interest? Or is the deal poof * ?
(a. Should I get a contract stating that they pay me a fee for consultation? How Do I frame the clause and on what kind of form should they sign? A Personal service contract? A clause in the sales contract? A Promisary Note with the conditions stated?
(b. How would I attach it legally as a lien on the house if they do go with another investor?
(c. If so, at what stage of the game should I ask for a service contract? after they sign a release for me to negotiate for them?
3. When Purchasing foreclosure property at the courthouse steps, are you, the buyer, responsible for any 2nd or 3rd mortgages not cured by your bid ?
(a. How about liens on the property? are they now your responsiblity?
(b. Will they have to be paid immediately?
(c. What is there a difference between a 2nd mortgage and a lien?
4. Will you be responsible to do a title search on every property your interested in, or will the auctioneers/trustee of the sale be forthcoming in what the exact status of the property is?
(a. Is there an alternative way to do the title search yourself and save the fee?
5. Who are all them defendants named in the foreclosure proceedings?
I've noticed when the mtg company/bank files the foreclosure proceedings they name A BUNCH of people as defendants, do they name everyone that basically lived in the house, or opened the door or accepted a subpeana? I see a lot of unknown spouse or unknown tenant, and then some people with different last names than the people owning the property along with some obvious corporate entitys like other banks and hospitals.
(b. Are all of these people not listed as living at the primary residence, lien holders secured by the mortgage?
5. Is there any hard and fast rules as to when you should buy a 1st mortgage and when you should buy a 2nd mortgage?
6. How can you find out who are the people that owns a house that looks deserted?
Sorry for the wordiness, I was just trying to get my questions across as clearly as possible, Concise probably would have been better eh? 
tia,
G
[ Edited by GWmson on Date 07/25/2003 ]
GWmson,
Whoa there buddy! You need to do a lot more reading because we're not going to answer all those questions. That is what the REI courses are for. You need to learn to crawl on your own before you can walk. We don't mind answering your questions, but people wrote books on the subject for a reason. You will find the answers if you search through the forums again and start reading the course you bought. Maybe check out some books in your local library.
Tanya
Thanks Tanya!
For the link.
These are general questions that will come up in almost every Preforeclosure/Foreclosure deal. I don't expect any one person to answer them all, Just someone please start the chain and answer one, then hopefully, others will follow.
thanks!
G [ Edited by GWmson on Date 07/27/2003 ]