I am learning all I can about the preforeclosure process and still have so many questions that I hope this group might be able to shed some light on.
1) First is timing. Sometimes I see that the notice date and the auction date might be a week apart, a month apart, and everything in between. Are these dates set by the trustees of the property? Is it at their discretion? Is the process so long that they just want to be done with it?
2) Trustee in charge of preforeclosure: should we contact them? I know to go directly to the seller to negotiate a contract first but let's say for example there's 2 weeks before the auction. You might be able to make the offer, do title work, etc. to close the property but do you send them a copy of the contract? Does that stop the auction if they see that they are getting the loan paid off in the purchase?
3) If a auction/sale date was set, is there a way to find out if it actually happened? I've seen minimum bids set for some of the properties and then others have nothing. Again, wouldn't they rather get paid then 'risk' it going to auction and losing money?
4) Then the most baffling question of all...several of the properties have a fair amount of equity and some are even owned free and clear. There are no liens against the property so I'm confused as to why it's going to be foreclosed on? I can understand if people lose their job, are moving, etc. but help me understand the reasons for the foreclosure.
Looking forward to your responses.
@Milla McCammon you need to find out the steps of the foreclosure in your state. Where I am between 30-90 days a letter is send to the mortgage holder. The first public notice is when they file in court. Court order then advertise in the public paper for three weeks. Then the public sale. example mortgage amount is $80000+ fees this is the bid the bank will start with. Anything over this will go to the mortgage holder. I am in a right of redemption state. They can cure the foreclosure up to 60 days past the sale by paying everything back.
Thanks so much Tim! I looked and am in a right of redemption state too. Looks like here in Missouri, they can only buy it back if it goes back to the bank.
So, if you got a property under contract with the seller (prior to the auction date), do you know if they are likely to postpone/cancel the auction? Is that up to the discretion of the trustee? Can we call them, or should we call them?
If the trustee can be convinced that you will Actually close on the property.......maybe.
I have two different cash buyers. One has $200MM to spend for investment portfolios and the other one will take on SFR, MF, etc. if they are decent. I just need to find them some deals on properties.
After listening to Brandon, I figured the preforeclosures might be the most motivated. Just anxious to get started.
Ironically, I made a list and recorded my first RVM campaign only to have their phone system go down. Argghhh. Hopefully, the phone provider will be back up today so I can do later on. I've heard it's a numbers game but I've got to take action and start somewhere.
Thanks for the input guys. Very helpful. I appreciate you.