REPORTS: UPCOMING FORECLOSURE SALES

These properties have gone the distance and are now scheduled for sale. Don't forget to complete a title search to ensure that you are dealing with a first mortgage and that all individuals who have an interest in the property have been properly served.

LEARN MORE ABOUT THIS REPORT		   FORECLOSURE REPORTS
1) Lis Pendens
2) Tax Deed Sale Report
3) Weeks At A Glance Report
4) Upcoming Foreclosure Sales
5) Recent Foreclosures Report


USING UPCOMING FORECLOSURE SALES REPORTS
All lien holders are wiped out at this sale except for a few. The IRS maintains a 120 day redemption right from the date of sale. Also code enforcement liens are maintained, but often these can be negotiated and bought for pennies on the dollar. Some city mortgages might attach as well

If the home owner's association is bringing the property to sale for delinquent assessment fees, then on many occasions the sale will be subject to any and all existing mortgages. These would have to be satisfied or assumed, if assumable.

A title search is very important! This will allow you to know that you are in fact buying a 1st mortgage, and not a 2nd. It will also ensure that everyone that had an interest was properly served. If this does not occur, you will be responsible for satisfying any lien holders left out of the suit. Or maybe stuck paying off a 1st mortgage if you purchase a 2nd mortgage at the sale. (Tip: FHA & VA mortgages are typically 1st mortgages.)

The procedure regarding the payment of sale for the property is as follows...

If you are the successful bidder at the sale, you will be required to pay immediately 5% of your total bid in cash or cashier's checks made payable to the Clerk of Circuit Court. Plus, you will need Documentary Stamps which are $7 per $1000 and 1% of your bid for registry fees. The remaining balance will be due by 4:00pm that day. Failure to return by 4:00pm with the balance will result in loss of the 5% deposit.

The final judgment amount represents what the plantiff has expended into the foreclosure suit. The tax assessment "generally" is about 80% of the property value.

While something may not appear to be a good deal on paper prior to the sale, at times it may. 15 minutes before the sale, the process servers provide final bids that they have been instructed to bid to and stop. For example a final judgment amount may be $87,000 with a tax assessment at $70,000. Typically that would be upside-down. But the day of the sale arrives, and the process server might have a top bid of $55,000. Now that property becomes a good deal that day. As you can tell, there often is no rhyme or reason to these bids. In fact, occasionally a lender chooses to take a loss.

Hot tip: VA mortgages tend to take the greatest loss at sale time - these are often the prime choice for many Foreclosure/Disclosure Weekly subscribers.


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