absentee owner in foreclosure!!

[Bryce Reeks]

Hello all! I have received my first potential lead through direct mail. I have been in touch with an absentee owner who's property is in foreclosure. She purchased the property in 1999 for $54k, so there should be some equity in it. I know there's a lien against it for unsightly premises, but she (the owner) couldn't tell me who the primary lender was. I have paid for a title search today, and I expect she would be willing to sell for pay off; however, because I've never purchased a home in this fashion, how do I ensure that the lender gets paid? Do I schedule an appointment to close with the title company? This property is R2 zoned also, so I have to decide if I want to flip / brrrr / or demo and build multifamily! Exciting stuff, but I'm unsure how to proceed. The owner was under the impression she didn't even own the property anymore, but the foreclosure suit is still pending. Hopefully the title company will shed some light on it today and I will know what's owed on the mortgage(s).

[Braden C.]

She could've refinanced at any point so just because she bought it for $54k in '99 doesn't mean that's the original or only mortgage. A title company will be able to identify the mortgage(s) and then order payoffs. If your county offers online access to official records, you can easily pull this information yourself without having to wait for the title company (minus the payoff figures). No matter what though, I would do the transaction through a title company.