I Am 1st 2nd Mortgage Holder...how To Foreclose
I own the 1/2 morgages on this five acre property in Colorado. Getting ready to foreclose. Do I have to present the trustee a cashier's check for the amounts of my mortgages (to take the property back) or ??? How do I claim possession of the property? Thanks for your help?
Who is the trustee? If trustee bids the mortgage balance at the sale on your behalf and there are no other bidders you will get a trustee's deed from the trustee stating the amount paid for the property. You will only need to pay the trustee or substitute trustee. Make sure he knows what your high bid is just in case you want to bid higher that the loan amount pluss your costs. Any amount over your amount due will go to the current owner and you will need to pay that amount if you bid higher. PM me if I can help more.
Good LUCK and Thank You
Hope this helps some
Ted Jr
Thanks Ted for your input! Really appreciate it. All I have to do is tell the Public Trustee to file a bid on my behalf for the value of my mortgages (1st and 2nd). This property also has a IRS tax lien (by the owners) dated prior to my mortgages and one after. How do they stack up in the price of things? Am I going to have to pay them off in my bid? Also the value of these IRS tax liens are approaching the value of the property. Am I at jeopardy. Will the IRS claim the property at some point in time? You mentioned PMing you...though that meant private mail (email)...sorry...must mean post mail. Thanks again. Austin
if there is an IRS judgement that is senior in position to your mortgages then yes that lien would have to be paid in order to sell the property free and clear of any encumbrances.. as far the IRS judgement that is after the mortgages, they have a right of redemption up to 120 days if you foreclose.
perhaps you can buy the IRS lien at a significant discount...or you may want to wait out the judgment until it expires...usually 10 years that's if they dont renew it for another 10 years.
if the IRS doesnt catch wind of the fact that there is a property they can go after you may want to wait it out since you said their liens are approaching the value of the property. maybe you can rent out the property until these judgements expire if you decide to foreclose and wait it out.
[ Edited by lp1 on Date 02/05/2004 ][ Edited by lp1 on Date 02/05/2004 ]