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Pulic Notices and sheriff's sales...

dheckel profile photo
  • Thursday, July 03, 2003 @ 10:34 AM EDT
  • 4 Comments

not sure if this is the correct forum but when I see a public notice of this ilk, at what "point in the process" am I.

The date and location of the sheriff's sale is in the notice.

Say I find a property that interests me, what would be the next step, save due diligence.

Do I check the title, find the source of the deposit that is required at the sale, most importantly, find a buyer?

Could I contact the owner?

Sorry for all the questions but any help is appreciated.

Don

Comments(4)

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    tanya121520th June, 2003

    Don,

    If the auction date is already set, then you don't have much time left to buy it in the preforeclosure stage. You can buy it at the auction, if that is the route you want to take. You can contact the owner and attempt to buy it before the auction...this is preforeclosure investing.

    If you plan to buy the property at the auction, then you will have to contact the county courthouse holding the auction and get as much information as possible. Find out how much you need to pay at the auction (usually 10% down and the balance due in 30 days). You should have financing lined up because you will have to pay in full the amount you bid.

    You can start looking for a buyer, but it depends on the property you are buying. There may be a redemption period that allows the original owners to buy back their home after the auction. After you wait that out, then you can move forward with the property. But, you have to worry about evicting the owners if they decided to "squat" in the home. A title search is up to you, but I would personally have one done to cover my a$$. I would also find out who is foreclosing on them because it will make a huge difference. You may end up inheriting other leins if you don't know what you're doing. You should ALWAYS know what you are getting into with each property before purchasing it. Good luck.

    Tanya

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    dheckel27th June, 2003

    Thanks for the reply Tanya.
    I figured that would be the response to my post but I just needed to confirm that.

    I have a hard money lender and a number of details (i.e. % down required @ auction, legal description, etc.) are listed in the public notice.

    A title search is something I would do to CYA/CMA.

    Thanks again.
    Don

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    dheckel1st July, 2003

    As I ponder this further, preforclosure investing has piqued my curiousity.

    So say the date of auction is set and I want to contact the owner to buy it as a "preforeclosure".

    Is there a typical way this type of "transaction" takes place? Do I make an offer, contact the mortgage holder(s), etc.?

    I've got a line on funding and need to work quickly.

    I have ordered books but have not received them yet.

    Any further help?
    Thanks folks.

    Don

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    knucs3rd July, 2003

    Hi Don,

    Until the pros respond, you could research the archives on short sales. Basically, as I understand it, you get the homeowner to agree with you to help them so a foreclosure does not get recorded on their credidt report by getting the bank to take less than what is owed on the property. You convince the bank(loss mitigation dept.) , using documentation, that proves the property owners are in distress other than just missing several payments(hardship letter) and that the condition of the property warrents a lower price than what is owed.

    Hope that helps as a start.
    Kelly
    (Fellow Wisconsinite)
    PS-Do your have info on land trusts specific to Wisconsin????

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