Georgia Foreclosure Question
I'm new to REI, so forgive me if this is a stupid question: What are the differences between a "Notice of Default" and a "Notice of Sale". I understand that a notice of sale is announcing a scheduled auction date. Once a notice of sale has been posted, do I still have the same opportunities to invest , or do I just have to wait for the auction?
Thanks in advance for your help.[ Edited by WarEagle1 on Date 06/10/2004 ]
Anyone?
I just want to know if there is an auction date scheduled, can I still negotiate with the homeowner?
The "Notice of Default" is like first contact. This is the notice that lets the world know that a lender intends to foreclose if the owners don't pay up. The "Notice of Sale" is filed some time after the "Notice of Default" (in Calif. it's 90 days after), and lets the world know when and where the public can bid on the home at auction.
By the time the "Notice of Sale" is filed, it is typically VERY close to the data of the actual foreclosure (auction).
Check the laws for your state for more information. For instance, in California lenders are required by law to allow a debtor in default to reinstate their loan up to 5 days before scheduled auction. Within the 5-day window it is up to each lender whether they will or won't.
But you don't have to wait until the auction. The owner is entitled to sell at any time before the auction. Folks at the point that they're facing the "Notice of Sale" have very little time...that kind of compression can be a real motivation to sell.
Good luck![ Edited by wannabe21 on Date 06/12/2004 ]