How to find out when a notice of foreclosure has been filed

Question

Hello all.

I'd appreciate your input. I am a new investor working to secure my first wholesale deal in South Jersey. I have a few questions. A little background on the property: it is owned free and clear and is in tax default. Apparently a notice of default was served, but the owner does not know when exactly he received it, nor does he know exactly when it will be foreclosed on. Additionally, the deed of the house is in his father's name (now deceased) and it was inherited by the son (who I'm calling the owner, and who lives there) and his two siblings. He is attempting to sell the property to pay off the lien and have some $$ for him and his siblings to split as opposed to getting nothing if the home goes to tax sale. Here are my questions:

1. Since the owner does not know, how do I find out when the notice of default was served and how long before the home is officially foreclosed on

2. Can I even sign a contract with any of the siblings when the home is not in any of their names? Does the home have to be transferred into one of their names BEFORE it can be sold? How long does it take to do this? (BTW, the owner is completely broke to the point where he had all utilities in the home turned off at least for the past year bc he cannot afford to pay them. So I don't even think he can pay an attorney to take care of this).

3. Apparently, the lien is a tax/water/sewer lien, and according to the owner, there are no other lien's on the property, but would it be prudent to get a title search on the home? How much does it cost to get one? I know other liens would certainly affect whether this is a good deal or not. Is this something that is done before even getting the home under contract?

4. I visited the property yesterday. It is in pretty bad disrepair, with the biggest and most obvious issue being the mold that is in every room of the entire lower level of the home (it's a 5BR, 2BA (~2000 sq ft) split level - lower level has one bath, living area, 2BR, storage space and utility room). The lower level is completely uninhabitable. Through my research, it seems that mold remediation for a home about 1500sq ft can run 2K-5K. Is this something that I should have an inspector look at before making an offer?

Lots of questions, I know. But I'd appreciate your guidance. Thanks!

Udele

Pili Yarusi · Answer

Hi @Udele Tagoe,

Is this property in a flood zone? I donʻt need the exact address but what town is this located in.

And @James Masottiis on it with his advise! Use it.

Aloha,

Pili

Udele Tagoe · Answer

Hi @James Masotti

Thanks for your response. I'll start contacting attorneys today.

Udele

James Masotti · Answer

@Udele Tagoe

**Disclosure** I have never done this before, it is simply how I would go about approaching the situation.

If you have a title search done that will give you an idea of who exactly filed the lean and when it was filed. You can then approach whoever placed the lean on the property for the details on that lien, and if they would negotiate a reduced payment on behalf of the owner. Based on the results of the title search, if it doesn't show the occupants as the current owners than I would also engage a probate attorney to validate that they are the legal heirs to the property, and find out what documentation is needed for them to be able to transfer title to you. Once you have affirmation from the attorney that they are the legal heirs, you have your missing pieces of information.

A) When and how much the liens are on the house

B) When/if the house will go to auction

C) That the people in the house are the legal heirs and can sell it to you.

At this point, if not sooner, you maybe able to negotiate a reduced fine with whatever government agency placed the lien on the property as they'd usually rather have it paid for up front than to have to go through the hassle of putting it to auction.

Once you have evaluated all of this than you should be pretty much good to go I would think...If I were you I'd plan for 5-7k for the mold removal too if it's as bad as you're saying it is. If you get it under contract (or the owner gives you permission) you can have someone come in and give you a quote

Best of Luck!

How to find out when a notice of foreclosure has been filed

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