All Forum Posts by: David Mitchell

What county are the properties located in that you're bidding on?  Also, so I understand, you are currently doing all of the research yourself, correct?

Also, if they are only offering a Quit Claim Deed, be sure to get a title search on the property prior to bidding.  Horror stories of the 2nd mortgage being the foreclosing entity.  Then investor thinks they got a great deal and end up owing on the 1st mortgage.  Be careful out there.  

There are many great deals but you need to do some due diligence.

here's a brief youtube video that lays out the basics of adverse possession:  https://www.youtube.com/watch?v=I-dbLop1aag

In my experience, the banks do the least amount of work possible on properties going to auction.  I have never heard of them sending an appraiser to a property scheduled for auction.

I fully agree with Andrew Syrios.  The worst thing that can happen is purchasing a property through foreclosure auction just to find out you bought out the 2nd mortgage and still owe the 1st.  Sadly, it is a story that happens too often.  Generally when people are trying to save a few bucks on the front end and not get a title search / O&E report.  

Be careful.  There are very good deals out there but proceed with caution.

This is a great question and unfortunately the answer is "it depends".  I'm curious what types of liens were these two additional liens?  There are some types of liens that may not be extinguished after a foreclosure even if the foreclosing entity was the 1st mortgage.  Some possible examples are: environmental liens, municipal liens, tax liens, etc. 

However, with some exceptions, generally lower level priority liens will be extinguished through the foreclosure process. 

What type of auction was this?  Did one of the three banks foreclose?

I'm not sure the specifics in Dekalb but generally there are two different ways these are handled. The first is you'll have to bring a cashier's check for the full amount you're willing to pay on the property.

The second scenario is you'll have to put down a non refundable deposit of X% (normally around 5-10%) and then you have a period of time (generally 5 business days) to gather the rest of the funds or do any necessary due diligence.

I'm curious, what type of deed are they offering?

Generally speaking, if the mortgage that caused the foreclosure was the 1st then it will extinguish any liens (including a 2nd mortgage) recorded after that one. Now there are exceptions such as property taxes, environmental liens, municipal liens, etc.

If research is not your specialty then get a title search prior to bidding on any properties. There are many horror stories on BP that go over the challenges.

Additionally, to foreclose on the property the process varies from state to state but generally there is a very specific process. This normally includes getting a certified title abstract and then notifying all interested parties of your intent to foreclose so they also can try to pay the taxes and interest prior to having their liens extinguished.

I do work with many investors that are very successful at this type of investing. At a minimum they get their interest paid and best case they get a house for a very good deal.

Best of luck!