@Daniel R. - I'm looking at cash transactions so don't know about lenders. And I'm looking at suburban markets that may be off the radar of typical investors. Thanks to BP, I've learned a ton about these deals in the last 24 hours. Specifically, guys like us may not get the property at initial Sheriff's Sale because we'll be outbid by the bank (research this - ton of info). But each deal is different so you have to do your homework.
Thanks for the heads up! Any specific threads/blog posts on here you recommend? Regardless, I will take your advice and dive into these specifics you recommended
@Daniel R. - I received info on some investor-friendly lenders yesterday. PM me and I'll forward to you. I'm new to BP myself so can't make any real thread recommendations yet. My advice would be to get somewhat narrow with what you're looking for. Otherwise, you can get lost in these threads for hours! Good luck
I am by no means an expert on purchasing houses at sheriff sale, my experience is 1 house from cuyahoga county to be exact. Ha! But I would be happy share my experience with it. What questions did you have?
Rick Klimek Our First house ever was from the Cuy cnty sheriff sale. The procedure is on their website.
As you stated, the legal clerks for the banks are there, protecting the mortgage amount. They will bid it to that amount.
You can search the county recorder for a property to see the original mortgage and then run an amortization schedule to estimate the current mortgage balance.
A lot of legwork, as many get pulled day of because the owner filed bankruptcy.
Thanks guys. I think I have what I need now. Should be interesting.
The property I'm looking at is a little different in terms of the bank's interest. It's a default on a reverse mortgage...and the original lender has sold their portfolio of these to another bank. In other words, the current holder bought the delinquent loan, most likely at a discount. This leads me to think that their interest in recapturing 100% of the original amount due is less than, well 100%. At least I'm hoping so. We'll see.
My experience is from last century but similar to Ryan's. I think they required a Certified check for deposit/minimum at the time of the auction with the balance in about a week.
I didn't actually buy a house, I just watched a couple sales and noted that other than bank reps, there was only one guy that bought anything. I approached him and it turns out his family owned a title company so he was able have professional title researchers find the potential gems at a reasonable cost. He said most of the deals he got would be borderline profitable if the needed rehab ended up being greater than expected (you don't really get to inspect the property), but there would be an occasional steal where there was no loan or the lenders rep didn't show up.
I was a trainee appraiser at the time and decided I had easier ways to find deals.