Beside Title search, Title insurance, Real estate tax, HOA fee, recording fee etc...do I have to prepare anything else for the closing after the Trustee Sale Auction ? If it is a cash transaction then how long is take for the closing ? Do I have to get my lawyer or the auction house (a law firm) will handle all these paper work ?
You really, really should sit down with a local RE attorney for an hour so they can educate you on the local procedures, risks and strategies for foreclosure auctions. Here there is no "closing" the clerk issues title after a designated period.
i take my contract and 3rd party authorization form down to the law firm that is handling the case. They take copies and ask the bank for a final pay off and extension so you can close. Once you get the final payoff you can amend the contract from there if other liens came back the homeowner forgot to mention. Or if you get green lights, fall forward and purchase it.
and all that is before the auction date.
Georgia may be different but in Texas you do not get a title policy at a trustee sale. You do want to check the title as any unsatisfied liens are now your responsibility. It's easy to pick up a $100,000 federal tax lien if you don't know what you're doing.
I'd follow @Wayne Brooks 's advice.
Some trustees, like Brock & Scott, operate in NC and GA. After completing the sale, in NC the trustee will only prepare a Trustee Deed. Hutchens will mail you the deed along with a check payable to the Clerk of Court equal to the amount of the recording fee. That's it. That is their only obligation.
You can get an attorney to "close" for you... meaning your attorney will do a Title search, get Title insurance, pay real estate taxes, HOA fees (if applicable), and record the deed. But what I (and others) do is have them do the title and lien search before you commit to paying the trustee. A sidebar: the attorney I use interfaces with the Trustee. From demand letter to deed recording, if you have ever had to deal with some of them (and I've dealt with a half dozen different ones) you will find that paying your attorney to handle the transaction is a worthwhile expense. My opinion only.
Funny you mention Brock and Scott, I'm just dealing with them for the first time here as the bank's attorney in a foreclosure. They've picked up a lot of foreclosure plaintiff legal work here recently, in the ever fluid foreclosure mill musical chairs.
I have bought many foreclosures in GA.. it goes like this
You look at a property you want to bid on .. Prior to the sale you run title either you go to the court house and do your own search or have a title co or attorney do it for you..
Its important to NOTE that GA is a Trust Deed state and as such these are Trustee sales not mortgage foreclosures that require a lawsuit and a case file.. they are very straight forward and foreclosure start to finish in GA can be done in 90 days or less..
This is what separates those that do it for a living and those trying to buy one home at the sale. Those that do it for a living will have special deals set up with title or attorney to run multiple searches.. As with a trustee sale your never sure which one will actually get sold. many are postponed redeemed etc.. So if you focus on one property chances are it won't go and you just wasted another month.
Once you bid and are successful bidder on a property that you have checked title on and think is good to go... you simply hand over your cashiers check to the cryer and they give you a receipt for it. The check is then taken to the Attorney or company that is the trustee conducting the sale they cash it pay their client ( IE the bank) and send you any overage back... In GA unlike many states I have bought Foreclosures in. there is a huge lag time from when they get the funds until the trustee actually records your Trustee's deed. It is up to the Trustee to record said deed they will not give it too you. and you are at their mercy.. it can take 45 to 90 days or longer.. During this time your receipt from the cryer is your only proof that you are the winning bidder. but with that you can get insurance and secure the home work on it get utls ext.
One caveat though is even after you have done all that .. The trustor may have filed BK the day before or the morning before the sale and the trustee will send you back your check... And then you just wasted that month on a sale that did not go through. There can be many mistakes made that invalidate the sale and the trustee just sends you your check. Until they record the deed you obviously can't borrow against it or get title insurance etc.
@Chris Martin In GA you have to pay for the property at the auction you cannot with hold funds to a later date. GA is not a deposit bring the rest back in 48 hours type state.. cash and carry at courthouse steps.. And the Trustee's are very very slow recording the Trustee's deed.. very frustrating.. Makes it hard for those that rely on hard money to back fill their foreclosure purchases.
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