Going in to unchartered waters

8 Replies

Guys, how many of you buy directly from the Courthouse, these days it is online, not on the steps . lol

Nobody can find good deals on Hubzi, Hudson, Xome etc.  So i think when a foreclosure is happening i just have to put myself first in the line and bid against the bank for their own property via the court house process. I am thinking i will have less competition because no a lot of people has knowledge and courage to do so. They are afraid of liens and clouds to the title etc, but most importantly marketable title .

I want to know if you have bought through the court house in FL, and when you obtained a Certificate of Title as being the high winner, were you able to sell it with a General warranty or Special warranty title ?

What websites did you find useful in conducting your own title search ? Do second mortgages and HOA lien survive ?

I have done my own title search with it comes to buying bank reo, there is not much risk, but i need to learn the ropes like the wholesalers because that is their secret and they have the big pockets.

thanks in advance

also, if you win the online court foreclosure auction, i assume the clerk of the court will payoff the first mortgage company who initiated the foreclosure action and pay them off and end of story right ?

Run a title search before you bid and make sure it is the first mortgage  company (superior one) that is doing this foreclosure auction. Make sure there is no IRS Lien!!! Check what will be the cost for title insurance. 

Drive through and check out the outside condition. Is any one living there? You have to deal with them after you win the auction. Try to see if they are former owners or rentors. Rentors are easy to deal compared to former owners. If the condition doesn't look good then inside will likely be bad too.

Try to contact HOA (if there is one) on HOA back dues. You will be the lucky one to cut the check for any back payments.

You are taking enormous risk though! What are the other costs charged on top of foreclosure auction. Add them up. So bid accordingly! Have discipline and avoid going over the number you want to pay.

Vic, good idea especially the cost of title insurance. will i get title insurance on a COT  ?

according to the final judgement of forclosure a writ of possession will be issues anything i want without the necessity of a court order.  the exact wording is " the clerk shall without further order of the court issue a write of possession to the person whos name is on the COT" now i need to know if chapter 718 and 720 can come into play ? what do you think ?

i did a search and don't see any recorded HOA liens , so i don't that is a heavy headache i need to worry about post auction.

now, you said other costs charged on top of the foreclosure ? what are these costs you refer about ?

Originally posted by @Lucky B.:

Vic, good idea especially the cost of title insurance. will i get title insurance on a COT  ?

according to the final judgement of forclosure a writ of possession will be issues anything i want without the necessity of a court order.  the exact wording is " the clerk shall without further order of the court issue a write of possession to the person whos name is on the COT" now i need to know if chapter 718 and 720 can come into play ? what do you think ?

i did a search and don't see any recorded HOA liens , so i don't that is a heavy headache i need to worry about post auction.

now, you said other costs charged on top of the foreclosure ? what are these costs you refer about ?

Since you are also from Florida, I  can share the costs

A. Florida Documentary Stamp Tax (doc stamps) on the amount of your final bid. This is standard

B. court registry fees (3% of the first $500 and each subsequent $100 at 1.5%), and the auction fee ($60.00). This varies based on county. 

So add up your numbers before you bid. 

Let me recap the costs for Foreclosure/Court house auction:

Title search prior to bidding in auction (Dont' cut corners)

Actual bid price

Florida Documentary stamp

Court registry costs

Title insurance (OH yes don't skip it)

Cash for key (IF you ahve to deal with occupants. May be add 1% of your bid price).

Lucky B,

  IF you are planning on shopping around on courthouse foreclosure auctions then establish a good equation with a title company for running title searches for low fee. Open permits can also be checked by calling/visiting the city or county. IF the title company says they cannot provide title insurance coverage on a property then stay away from that auction. Probably higher priority lien holders are there (IRS,  property tax, 1st mortgage, etc).