All Forum Posts by: Ryan W.

Here are the basic facts: Foreclosure proceeding initiated on a home worth about $500k. The lien being foreclosed, which is the only outstanding lien, secures a HELOC with a UPB of about $250k. In an effort to better understand the NJ foreclosure process, I have the following questions, both of which assume the property goes to sheriff's auction.

1. If the sheriff's auction results in a winning bid that is higher than the amount of owed to the bank, including all penalties, costs, etc., who get the surplus--the bank or the homeowner?

2. If it becomes an REO and the bank sells it at or near market value , is the surplus of approx. $250k just gravy for the bank?

Thanks in advance for your always thoughtful responses.

@Zachary C. thanks for your feedback.  Proficiency in real estate accounting matters is paramount, but I would prefer someone local that I can meet face-to-face on occasion.  I have worked remotely with CPAs in the past with mixed success, and thought I would try to start with someone local as I am getting started--assuming they have the right expertise.

When researching pre-foreclosure properties, I get an initial feel for the lien situation from the foreclosure complaint, but know there may be others out there.  Short of doing my own search at the courthouse, what are your suggestions for obtaining a better picture of the title to identify potential red flags as I am evaluating a property?  I am thinking about things like municipal liens and federal tax liens that would need to be accounted for in my investment analysis.

Do title companies issue "preliminary" title reports to investors for just this purpose? How would such a report differ in scope, content and cost from a report issued as part of underwriting a title policy?  Thanks in advance!

Thank you @Jessica Zolotorofe and @Steven Hamilton II for your helpful replies!  

Hi All. I would appreciate any recommendations you may have for a CPA in Essex County that has solid experience working with real estate investors. Thanks in advance!

Hi All.  I would appreciate any recommendations you may have for a CPA in Essex County, NJ that has solid experience working with real estate investors.  Thanks in advance!