All Forum Posts by: Bruce M.

ttt

Originally posted by "raiz":

I'm looking at buying and living in a foreclosure that needs quite a bit of work. Pre-qual went fine, and submitted an offer.

While shopping around for the best 30 year fixed, I've gone to 2 banks who said they won't even lend to me because the property needs too much work, and an appraiser would advise them not to lend.
I'll admit, it needs a new roof, and there is no fridge or stove. Is it a common practice to deny lending on a property that needs work?

In my area there are so many home foreclosing that there is no need to take on the burden of a property that needs tons of work. I just bought a property worth $415K for $298K and it was built in 2005 and is in perfect condition. The most I have done is to clean the appliances, fix a few busted sprinklers and vacuum the floors.
If you are intent on buying a property that needs a lot of work, you should look for an amazing deal. One issue that I'm seeing recently is that investors are buying up all the low priced foreclosures. This is not necessarily driving up the price, but its preventing a low ball offer from succeeding.

As far as the mortgage is concerned, search the web for a local Mortgage Broker. Mortgage brokers work with many many lenders so they should be able to quickly determine if you can get a loan.

Good luck

Originally posted by "jkaller":

At the same time, there are some pitfalls that you should be aware of. Often, it is not possible to inspect the property before the auction, so you cannot know what the condition is –

In California I'm finding that its somewhat standard practice for the trustee to send someone to the home to check to see if it is vacant. If they find the home vacant, they put a red sticker on the window spelling out that the home is vacant and that the locks have been changed. I don't know if they rekeyed the locks or not, but they leave all the door unlocked.....probably to avoid the previous owner kicking it in should they return. Anyway, I have had no problem checking homes out. If I do find one that is difficult to examine, I move on to the next. After all, there are so many to choose from.

If you choose not to assist whoever is in the house, you may have to evict them. This can be tricky, and should be left to an attorney who is experienced in evictions, unless you have the experience yourself.

Its not worth the grief, move on to the next foreclosure

So I bought my first Trustee Sale Foreclosure. I gave them a check, they gave me a receipt. Its expected that the new Deed will be recorded in 15 days.

I was actually expecting something to be recorded that day from the bank, perhaps not the final deed, but something designating the property as having been foreclosed.

It seems to me that until the new Deed is recorded, there is still a potential for a tax, judgement or mechanics lien to be recorded. What am I missing?

I was told by a title company employee that the IRS has 120 after the Sale to record and collect. I think this is bad data. Is there a window after foreclosure that the feds can still claim $$$ from the property?

Originally posted by "jbock220":

I've found some great NOD's, how do i go about approaching them? I figure a letter (initially), but how should I organize it? Then what? Please help!

I dont think the letter is the way to go. I get stuff like that all the time in the mail.....its just part of the never ending stream.

Nothing is going to top just approaching them. But you better have your spiel prepared.

I spoke with yet another title company and got some interesting info.
This large title company claimed that they had closed many of their offices because of the slow down and that they were told to no longer issue preliminary reports unless there was a contract (buyer/seller) in place. Apparently they just dont have the man power to service anything unless there is a clear revenue stream for them I mentioned that I had heard that the REO market was taking off and must be sending more business their way. They said that while there is an up tick in REOs, the state regulates what they can charge and they don't make much on those deals. That part does not sound accurate to me. Either way, I'm getting no where.

Originally posted by "**********":

In SAC there is NO need in my opinion to risk a trustee sale purchase as properties for 60% of markets value and less via reo and or short sale are a dime a dozen.

A few days ago I would have agreed. But something is going on. Investors are pouring out of the woodwork to buy the starter home REOs. I tried to buy a few REOs with cash and no contingencies and was iced out due to multiple offers.

The question is, rather than holding on speculation for better times. Is there a market for resale at any price?

Yes, as per the above.

Also, if your going to SPEND money on homes, I can hook you up with a title rep at Land America that will help you, but it's a two way street. The tile companies you called seemed to give you a STRANGE answer.

Yes, Please hook me up.

My understanding is that the 1st deed is subordinate to Tax Liens, Mechanic Liens and Judgements. If this is true, then when a property sells at a trustee sale on behalf of the 1st deed holder, isn't the 1st deed holder responsible for paying the superior liens first?

How common or likely is it to be "set aside"?
I would think you would want to quickly put property insurance in place as well. Or is this the responsibilty of the bank to until the Deed is in hand?

What do you want to do with a post sale property that may take months to get on MLS as REO? Your not going to have a shot at the property prior to that time.

I will either turn around and put it on the market for a quick sale or rent it out. If I don't buy it at the trustee sale, I would probably not buy it when it shows on the MLS as an REO.

And YES their is even more of a need for title research post auction sale!
Liens don't just disappear off title, that takes work.

I would not buy a property with judgements or tax liens.
The subordinate liens would be wiped out by the foreclosure.....or are you saying there is additional title work necessary to enforce the wipe out of subordinate liens beyond recording the deed from the foreclosure sale?

Yes, I'm In Northern CA above Sacramento

Yes, I'm an investor.

My understanding is that I really only need to worry about Tax and Mechanic Liens and Judgments. And to confirm that the foreclosing loan is the 1st loan. All other loans are wiped out. If this is true, then I'm only after a report that reveals the Tax/Mechanic and Judgements.