I Need Help. Preforeclosure Question. Getting Frustrated
I am having the hardest time getting the "default" information needed. I have been to the City court recorders and to the country recorders. What they are giving me is a listing with the name of the plaintiff, defendant, case number and the statement of debt which is usually the Total amount due on the mortgage not the default amount.....then..I have searched through the files for the cases and I do find the "statement of indebtness" but I have been told that these amounts are still not the figures that i need. I am soooo frustrated right now. I guess its just part of being a newbie. any help would be appreciated. im in maryland. Oh by the way, when I call title companies here they act as if they dont have a "clue" as to what im looking for :-?
I don't think you should concentrate on how much in debt your potential homeowners are in. Don't concentrate on an amount of back payments they owe. Concentrate on getting in touch with the people in default, figure out what they owe, pull comps with the help of your local reatlor, and decide then and there if you want to pursue those deals. Just get the name/address of each person in default and mail to them or call them.
What do you want to find out from title companies?
[addsig]
I read through tci posts that title companies are a great source to get preforeclosure information. I just thought that it would be a good practice to know "numbers" before actually meeting with the property owners. It is my belief that if I know its not going to be a half way decent deal upfront, i can save the owner of the property some frustration of thinking im going to help them out of a bad situation when it turns out I really cant help them.
First, I wouldn't recommend foreclosures as an area to start in this business. However, since you have... the previous poster was correct focus on making contact with them first. When you want info on them I'd ask you, doesn't your records building have a computer? I'm not familiar with MD, as I'm in NY, each foreclosure that is sent to courthouse for filing is issued an index number here, and I'd guess it's a similar system. This is like a file number. We have a computer where you can search by address, owners name and type of action. In NY because it's a mortgage state you're searching Lis Pendens. If you search the foreclosures for a date range you will then get the index numbers. Take these to the records room and ask to see these files. Everything regarding the action is in there, unless someone stole it. Yes that happens too.
If you have questions most of the people that are in the recorders office are title searchers who are usually very willing to answer questions.
Normally a statement of indebtedness is not filed, you will have to estimate amount owed to determine if wish to pursue the property. Lenders normally will not release this information without the homeowner's permission.
[addsig]
Thank you for your reply. I have had the opportunity to pull the "case" and the case only gives me the total amount of the debt.....this includes balance on the mortgage, etc. Since it is my intent to bring the loan current NOT payoff the entire loan, i need to know the default amount.....this is the amount I cant seem to get. Actually the statement of indebtness is filed in Maryland. I guess I was just looking for the "default amount. I know that in California they have everything laid out for you....I guess not in Maryland.
thank you for your reply
Quote:
On 2004-12-29 11:21, Bob846 wrote:
First, I wouldn't recommend foreclosures as an area to start in this business. However, since you have... the previous poster was correct focus on making contact with them first. When you want info on them I'd ask you, doesn't your records building have a computer? I'm not familiar with MD, as I'm in NY, each foreclosure that is sent to courthouse for filing is issued an index number here, and I'd guess it's a similar system. This is like a file number. We have a computer where you can search by address, owners name and type of action. In NY because it's a mortgage state you're searching Lis Pendens. If you search the foreclosures for a date range you will then get the index numbers. Take these to the records room and ask to see these files. Everything regarding the action is in there, unless someone stole it. Yes that happens too.
If you have questions most of the people that are in the recorders office are title searchers who are usually very willing to answer questions.
Bob, what would you consider as a start in this business..... im just curious.
Get a sig auth from the HOs and call the bank/attys yourself. Obviously you're not going to reinstate w/o the HOs on board so just ask tham to sign a sig auth.
In my opinion, pre-foreclosure is a good way to start. First, you need to control a position on the property. Either the homeowner or a junior lein position. The only good a title company will do for you is let you know who all the junior positions are.(I would suggest you start with your clerk and recorders office and do the research yourself because it is good experience) Find the FMV of the property and then start making offers to junior positions for the note depending on what your margins are. You make most of the profit on the deal by buying the junior notes that are getting ready to be wiped off.
I would work on the HO at the same time. Make offers to some lein holders before you let them know that you are talking with the HO. They are less likely to talk when they know you are in contact with the HO. Buy the note straight out and become the lender and defend the position at the sale if you have to.
If the HO just hit bad luck and is getting themselves back on their feet, get them in touch with your mortgage broker that specializes in hard cases.(you need one if you don't have one by now). Help them pay you off or work it out with them for the deed and then flip before the sale.
In the pre-foreclosure game, the best deals are already worked out before the rest of the other courthouse step yahoo's are trying to figure out what happened to the deal they have been tracking for the last month.
Quote:
On 2005-01-09 22:27, csfg wrote:
In my opinion, pre-foreclosure is a good way to start. First, you need to control a position on the property. Either the homeowner or a junior lein position. The only good a title company will do for you is let you know who all the junior positions are.(I would suggest you start with your clerk and recorders office and do the research yourself because it is good experience) Find the FMV of the property and then start making offers to junior positions for the note depending on what your margins are. You make most of the profit on the deal by buying the junior notes that are getting ready to be wiped off.
I would work on the HO at the same time. Make offers to some lein holders before you let them know that you are talking with the HO. They are less likely to talk when they know you are in contact with the HO. Buy the note straight out and become the lender and defend the position at the sale if you have to.
If the HO just hit bad luck and is getting themselves back on their feet, get them in touch with your mortgage broker that specializes in hard cases.(you need one if you don't have one by now). Help them pay you off or work it out with them for the deed and then flip before the sale.
In the pre-foreclosure game, the best deals are already worked out before the rest of the other courthouse step yahoo's are trying to figure out what happened to the deal they have been tracking for the last month.
Please explain the Junior Lien Position. thank you !!!
Junior lein is just a mortgage or judgement that is behind a 1st mortgage. Lein position is most generally who filed their lein at the recorders office first. Understand your state but generally any junior lein is wiped off if a property goes to sale and the bid is what is due in the foreclosure. Some junior leins would rather just loose all their money in a foreclosure but most will take something rather then nothing.
A junior lein has to take the risk that someone will bid high enough at the sale to not only pay off the 1st but have enough left over to pay their position as well. They can show up at the sale and make sure that they get the property or the bid covers themselves but most won't expend the cost show up.
For instance
FMV 100K
1st 60K(foreclosing)
2nd 40K
If your sales in your area usually run 80% FMV what will happen is that the 1st will get what is due them and the extra 20K will go to the next lein holder. If you are in that position what would you offer the second before the sale? My offer would depend on the bank and also considering what it would cost them to take the time to protect themselves. If you got this lein for say 10K, you could wait for the sale and possibly double your money or work something out with the HO and help them pay you off by refinancing. Give the HO a discount on the 40K note you own for maybe 30K and triple your money.
If the HO is in no position to recover, work something out with them to deed the property to you. Some want something up front but many will accept something on the back end for the deed. Remember you are at a basis of 70% of FMV on this property.(60K1st + 40K2nd that you bought for 10K) Don't get too greedy and make it work out for everyone and move on to the next deal.
I like to keep things simple as can be and everyone wins. Every state has their own twist on the rules but most generally it works in this way.