I'm looking into doing some pre-foreclosure home buying. From what I've read here, most people get notices of defaults from their county building as a starting point for mailing out letters to potential sellers.
I contacted the county recorder today and they told me that they don't record notices of defaults in Sangamon County (which is in Illinois). They told me that they record "lis pendings" only. I thought a lis pending occurred before the lender goes to foreclose on the property so wouldn't it occur after the notices of defaults?
If my county recorder doesn't record notices of defaults then where can I get a list of them for free? Shouldn't NOD records be public record?
Real Estate Investor · Craigmont, ID · Member since 2009 · 564 posts · 239 votes
16y
Not being in Illinois I can't tell you the process or filings but I would say you can't trust just any clerk to tell you what documents are filed and what documents you need to accomplish your goals.
You have to dig for yourself and find out what you need. I find both “Liz pendens†and "notice of trustee sale" here in my state. I think the difference is judicial vs. non-judicial foreclosure proceedings respectively.
There is no pre-compiled list. You can usually enter your search criteria in a county database and pull up your own list.
Pleasant Hill, CA · Member since 2008 · 428 posts · 43 votes
16y
Right now a good way to find pre foreclosures if you team up with a local mortgage broker. They can be helpful because when a person is in trouble the first thing they do is try to refinance or modify their mortgage.
If you can make it mutually beneficial you both you and the mortgage pro you can get those pre foreclosures when the broker can't refinance. It requires patients and relationship building with added value though.
Real Estate Investor · Louisville, KY · Member since 2010 · 20 posts · 1 vote
16y
What James said. Lis Pendens work just like NODs and let you know that the potential seller hasn't been paying there mortgage for the last 60 to 90 days and the bank has started foreclosure proceedings. In my state, you have around 120 days after the Lis Pendens is filed to correct the loan and Im sure its a similar time frame in Illinois.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
Hi, you need to become familiar with the steps necessary to be taken by the lender/trustee in the foreclosure process for your state. Filing a notice of pending legal action (les pendis) may not even be a requirement. Publication of sale is generally required by the trustee. This give the public notice of not only the sale but also that any subordinate liens may not be secure. IMO, as suggested above, the best way in all states to be first informed of any problem loan is to work with the lenders or originators. When loans become a problem with the lender or a servicer, collections will begin first. If you can get these people to suggest you as an alternative to catch up payments or purchase the note...whatever, you'll be far ahead of any filing or publication. A good business plan with funding behind you can be presented to any lender and offer to take all they have! If you offer a better means to cure any problem the lender will work with you. Save them time or money or both and follow through with what you say you'll do, pretty simple! Bill
I'm going to try to contact a few of the mortgage brokers here in Springfield. I know one of them works hand and hand with a Realtor that specializes in foreclosed homes. I bet he would have some leads.
In the mean time I'm going to send out letters to the individuals that are getting lis pendings notices.