Foreclosure University
Your Online Real Estate Investing Resource
Question: If a buyer gets an accepted offer on a short sale, how long will it take to receive the deed and what should buyer do to make sure they receive the deed so seller does not take the house back?
Answer: – Once a short sale is accepted, everything is handled through a title company. The lender will give you a specific time, usually within 30 days, in which to have the sale finalized and closed with a title company.
by Jarad 2 Comments
Question: If your home foreclosed and you tried the short sale and it did not sell,then you give it back to the bank. when the bank sells it for more than you owed what happens to that part that is over the amount you owed?
Answer: – After the foreclosure auction, those funds go to pay off any junior lien holders. If there are no junior lien holders those funds “should” go to the homeowner because it’s legally theirs. It’s interesting that most homeowners have no idea that they are entitled to any excess funds from the sale of their home through foreclosure. There are literally millions of dollars that go unclaimed each year and the county does not take the initiative to notify the homeowner of those overages. There are lots of companies, specifically attorneys, who understand this process extremely well and assist homeowners in getting these monies back… for a certain fee of course. What you have to be careful about are those companies who prey on people who have no idea what’s going on and use that to their advantage.
So you basically have two options. Go get the money yourself, it’s yours, you’re entitled to it. Or pay someone to get your money for you that way you don’t have to worry about it and you can let a professional do it. Just make sure you know what amount you are entitled to, that way you know how much the company or individual is charging you for their expertise.
Question: Are there any remedies for people who own a second home? I see a lot of help for primary home owners only. What about for people who use their own life savings to invest on real estate? Is anyone out there on the same situation with a good solution? Please HELP!!!!!
Answer: -Well, I’m sure you’re not the only one out there feeling the pain and have spent all their savings on buying homes either as investments or for themselves. The best thing you can do is work closely with your lender to see if you can do a loan modification, or try to do a lease option or even rent it out temporarily until the market turns around. At least that way you have some income coming in to pay part or all of the mortgage.
Question: what is strict foreclosure and how long i have to wait to purchase a home in the strict foreclosure process
Answer: -Strict Foreclosure is foreclosure without an auction. It’s basically where the lender obtains a court order to transfer title of the delinquent property back to them (the lender), without having to go through a foreclosure sale. Typically there is a redemption period that is set by the court so it really depends on what the court says as to when you can purchase a home in strict foreclosure.
Question: A condominium has gone into foreclosure the lending company has it back. The condominium has a lien on
it the lien was filed against the original owner.
The owner is about to file bankruptcy. Does the lien
stay with the condominium? Can the association still
collect when the property is sold?
Answer: – The foreclosure auction will wipe out any junior liens that are attached to the property if they don’t protect their position. If a judgment or lien was filed against the homeowner, then it will stay with him unless he files bankruptcy, in which in most cases, liens and judgments are wiped out. So no, the association wouldn’t be able to collect. The only liens that don’t get wiped out are the property taxes and IRS tax liens. Those get paid first when the property is taken back by the bank.
by Jarad 4 Comments
Question: If the first lien holder is foreclosing and there is a second lien holder who does not have a “notice of sale” clause and therefore is unaware of proceedings, you advise there is no reason to reveal the second in my hud statement when attempting to short sale the first. However, since I am buying the property pre-foreclosure, I believe the second lien will still have rights which means I will have to factor that amount into the purchase price which will make my short sale offer to the 1st much lower. If the 1st doesn’t know about the second, it seems that they would consider my offer ridiculously low. What would be their motivation to short sell it to me when they could let it go to auction and either extinguish any junior liens, or better yet be paid off entirely by the 2nd lien holder should they discover what is happening. It seems that it would be better in a situation like this to notify the 2nd position what is happening and try to cut a great deal with them and pay off the 1st myself. Am I seeing this correctly?
Thanks,
Jesse
Answer: – In this market, nothings seems like a ridiculous offer. No question you have to deal with both banks. In order for a short sale to go through you need the cooperation of each lien holder. Typically what tends to happen is you negotiate the amount you want to pay to the first lien holder. They will then decided how much they are willing to pay the 2nd to “release the lien” or “satisfy” the loan. Often times the 1st will only allow a small amount ($1000 or so) to be paid to the 2nd, which can be a slap in the face. So depending on the deal, sometimes you have to negotiate with the 2nd to pay them a different amount “handled outside of closing” so that everything will work out. In most cases, no, you don’t have to tell them there is a 2nd, they already know. You just need to tell them what you are willing to pay (short sale) factoring in also that you need to payoff the 2nd.
And the reason why they don’t want to let it go to foreclosure is because more than likely it’s not worth what is owed and the 2nd is not going to bid at the auction. Now obviously this isn’t the case all the time, but especially right now, homes values have dropped a great deal, some upwards of 50%, so they would rather unload it to someone else and take a loss now rather than end up with more inventory they can’t get rid of later.