All Forum Posts by: Dan Rosenberger

I cannot comment about sheriff sales in Illinois.  However I am familiar with procedures in Indiana.

First, you want to learn as much as possible.  Talk to the people who actually administer the sale.  They can't provide legal advice, but if they have been running sales for a while, they should have some helpful information.  Attend sales whenever possible including neighboring counties.  Learn whatever you can.

In Indiana, each county has their own rules.  Some require funds turned over to the sale administrator in order to bid.  Others will allow payment later the same day or the next day.  So you want to know the rules of any county where you intend to bid.

If there are two mortgages, you want to understand what happens to those mortgages after the sale.  Is there any right of redemption?  Are there other potential title issues?  What about property taxes?  If there are any sewer liens or weed cut liens, do those stay with the property?  If the defendant is deceased, are there any additional issues? A title company could be a helpful resource.

Dealing with banks after the sale:   Big banks will probably not talk to you.  Smaller banks will often allow you to place a direct offer if they believe that you are a serious cash buyer who can provide proof of funds for a quick closing.

If there is a sump pump in a basement, somebody will probably be in the basement regularly and know if it is not working.  Not so with a sump pump in a crawl space.  If you do put a sump pump in a crawl space, put it where it is close to an entrance to the crawl space.  Also consider an alarm to sound when the sump pump is not working.  And think about where the sump pump will drain to.  

Deals are harder to find, but sheriff sales and HUD Homes might be a source. Rural areas might have less competition than the cities and nearby suburbs. In the case of sheriff sales, do your homework, be familiar with the rules and policies which may vary by county.

Just checked again (late afternoon) and it is up to 153 homes in the state.  So it might have been a glitch.

I have seen major drops in numbers when they are transferring houses to a new asset manager.  Also sometimes I have seen a one day removal before a price drop.  I'm sure we can figure it out in the next few days .

On Thursday morning 4/27/17 there were 157 HUD Homes active in the state of Indiana. On Friday morning 4/28/17 there were 97, for a drop of 60 HUD Homes in the state on HUDHomeStore. I doubt that they accepted that many offers in one day. Does anybody know (or suspect) what is going on?

In some states you have to do title due diligence before the sale.  It is my understanding that in Ohio you can do a title search after the sale, although I am not sure the remedies if you discover defects.  So talk to title companies in that area who are familiar with the process.  You probably do want to get a title search done.

If the HOA foreclosed their lien, they probably have a sheriff deed (or whatever it is called in that area) but the loan you hold remains against the property. For HOA dues after the foreclosure, would that be negotiable with the HOA? Who is the HOA going to bill for HOA dues? Themselves? Sometimes an HOA will foreclose on their lien and rent out the property until the first mortgage forecloses. (For the HOA, something is better than nothing.) The deed in lieu sounds like it might be worth investigating. Are the property taxes being paid? I have seen items added on to the principal owing, including back interest, late charges, taxes, insurance, sewer charges, property inspections, property preservation, title search and attorney fees.

Assuming that you would use an attorney who specializes in foreclosures, that would be the best resource for the math related questions. You only want to do this once, so the attorneys expertise is what you need to get this right.

If the HOA has already foreclosed, they no doubt did a title search prior to foreclosure. Getting a deed from them sounds very interesting. Ask your attorney whether that deed would give you clear title. Would you need to file a release on the 1993 loan? And would a new foreclosure or quiet title be necessary? Or can it be avoided?

Each state and sometimes each county has different rules and customs.  I can speak relating to sheriff sales in Indiana.  In some counties, the people administering the sale will give the bank bid when asked.  In other counties, they will not.  I have had very little success in getting attorneys to cooperate in providing information (although in a few cases they have been helpful.)

The strategy for how the bank determines its bid is one of the mysteries of the universe.  Sometimes there is a mortgage insurance provider to guide or direct them in a number.  Sometimes it is based on a BPO valuation.  Sometimes it is based upon the amount owed.

You might find out more helpful information from the people at the sheriff department than all those books, because they deal with it every day and are familiar with local regulations and procedures.  Be extra nice to them.