I'm going to be visiting my county courthouse this week to watch the preceedings of several foreclosed properties. I had planned to just watch and ask questions but a few of the properties look like that have a good amount of equity in them.
Below is a copy of the legal notice. I'm not sure if I understand the wording 100% and have some questions about it and how it relates to the foreclosure process here in North Carolina ...
Third party purchasers must pay the excise tax, and the court costs of Forty-Five Cents ($.45) per One Hundred Dollars ($100.00) pursuant to NCGS 7A-308(a)(1).
In addition to the winning bid purchase price I would be responsible for the excise tax and court cost. For example if the winning bid was $100,000 I would end up paying $450 in tax and court costs?
A cash deposit (no personal checks) of five percent (5%) of the purchase price, or Seven Hundred Fifty Dollars ($750.00), whichever is greater, will be required at the time of the sale.
Since no personal checks are allowed does this mean I have to bring cash to the auction? Are the funds paid to the attorney handling the auction or they paid to clerk of courts or something? Is it normal practice to get a cashiers check for 5k or so as was indicated in another thread and sign it over if I have the winning bid?
Following the expiration of the statutory upset bid period, all the remaining amounts are immediately due and owing.
I'm guessing I have 10 business days to pay off the remaining balance.
Said property to be offered pursuant to this Notice of Sale is being offered for sale, transfer and conveyance "AS IS, WHERE IS". There are no representations of warranty relating to the title or any physical, environmental, health or safety conditions existing in, on, at, or relating to the property being offered for sale.
Since I can't gain access to property prior to the auction I'm purchasing it pretty much unseen since I can only view it from a distance from the exterior. Also any effects or personal property left at the described lot will now transfer to the winning bidder? Does this include cars that are left in the driveway or backyard?
This sale is made subject to all prior liens, unpaid taxes, special assessments, easements, rights of way, deeds of release, and any other encumbrances or exceptions of record. To the best knowledge and belief of the undersigned, the current owner(s) of the property is/are Xxxxxx X. Xxxxxxxx. If the trustee is unable to convey title to this property for any reason, the sole remedy of the purchaser is the return of the deposit. Reasons of such inability to convey include, but are not limited to, the filing of a bankruptcy petition prior to the confirmation of the sale and reinstatement of the loan without the knowledge of the trustee. If the validity of the sale is challenged by any party, the trustee, in their sole discretion, if they believe the challenge to have merit, may declare the sale to be void and return the deposit. The purchaser will have no further remedy.
I did look up the properties and to the best of my knowledge it is the first mortgage that is being foreclosed on (VA Loans for two of them). There aren't any deliquent property taxes on the properties so that is a plus. I'm not sure what other kind of liens I would have to be concerned with if it is indeed the first mortgage that is being foreclosed since it wipes out junior liens (2nds, mechanics, etc). Or am I missing something?
One last bit is about the current resident. In 3 out of the 4 properties that are coming up for auction there are people still living in the properties. What happens to them after the auction, redemption period passes and they don't file bankruptcy or bring their loan current? If they are still in the house when the deed effectively transfers to me I guess I could give them a friendly notice to move themselves and their possessions quickly. I would think approaching them negatively could only incite them and in some cases cause them to vandalize the place before leaving. I dunno maybe worst case thoughts there.
Woah, got a little off track there. Anyhow if you are in North Carolina and have had any experience with these foreclosure auctions any help would be greatly appreciated. Thanks.