Courthouse Steps
I am new to preforclosures and foreclosure auctions. I did the smart thing and showed up to a few so I know what I am getting into,how it works, who the players are,etc. I thing I cannot figure out after talking with a "VET" there. He says he does a minimal lien search on each property and sometimes not at all if no time. How does this work? You bring the cashier's check for the bid amount. Now you find out all sorts of liens after gouing to get title ins or title search. If the liens exceed the benefit of profit, is there a way to get out I am missing? I assumed once they get that check, its yours Liens and all. I know some Liens get wiped clean....what's is the story?
Only way I know of to get out is lose your deposit. You take a chance if you try to do your own title search unless you really know what your doing could miss a lien. But do you pay to have a search done on every one you might bid on. That seems a little expensive since you may not bid or auction cancelled.
Exactly! Like Preforeclosures..the name of the game is guerilla ****Must Reach Senior Investor status before posting URL's***vering as many lead at, s as possible and reaching as many sellers as possible. DO people prelim title every one? That would cost big $$$$, and since you do not know what the bid price will end up at almost every foreclosure seems like a profitable deal and the numbers work. So what do people do who do this consistently?
It is VERY important to get a title search!
Go to the Real Estate Records room of your local county courthouse and spend time learning how to do the title search yourself.
The VET that says that he does not do a search on some properties either ...
A. Has had the property come up before, so he remembers it (and previously did a title search)
B. Is lying to you
Hope This Helps!
Mrs. Meltzer
One thing you need to learn fast is that the "vet" sees guys like you all the time. They want you to get "stuck" with a property that has a problem so you no longer come to the Sherrif's sales. You are only adding to his competition. One more thing. Vets will bid a property up higher than it should go for, just to make sure you learn to never go to a legal sale again. You always do a title search. Learn how to do it by visiting with your county clerk of court and your county recorder.
Its very simple Liens filed FIRST are superior. If a 15,000 lien filed before the primary $150,000 lien, then the $15,000 WILL NOT get wiped at auction (we have this scenario last month).
IRS Tax leins are superior, and will stick to the proeprty if you buy at auction, and property tax liens are superior to all. You will pay whatever porperty taxes are owed if you buy at auction.
Mechanic's liens vary by state. Check with an attourney.
Perhaps this "vet" has been just playing lucky or perhaps he is really a veternarian posing as a real estate veteran
On a more serious note, you won't necessarily have to order a title search on each one. Once you get good at it, you'll be able to do your own searches. Spend some time at the county recorders office and learn how to search out title. At the beginning though, if you don't know what you are doing, you should use a title company or lawfirm to handle this for you.
I generally discourage newbies from buying at the courthouse until they feel comfortable with how the process works. There are no refunds if you make a mistake.
J
I think some of the confusion is that we don't always mean the same thing when we say title search. To some people it is a formal title search with abstract and opnion, others it is just a check at the court-house. I am with ****Must Reach Senior Investor status before posting URL's***zer, there should do at least a cursory check at the court house. A suggestion; if you don't know someone at the county court clerk's office, go make friends. If you are in a big city, go out to a more rural county and ask for some assistance on a dummy property to learn the ropes. County officials are not the highest paid people in the world and danishes and donuts on Wed. morning work wonders.
Sorry, I was just expressing my agreement with Mrs Meltzer there and I guess it resembled a URL.