Foreclosure Auction?
Question:
The amount due under the Judgment is $5,120.16, with interest, costs, etc. Sale subject to terms of sale and provisions of the Judgment herein, including being subject to a mortgage held by Charles C, upon which there is due the principal sum of $12,300.00 with interest.
What other measurements should I take? I know is too late for a title search, or should I conduct a title search and purchase insurance after I win the auction?
Answer:
Call the tax office and see if there are any delinquency's
See if a realtor can get you a number to check for outstanding owner's association dues
Go to the courthouse and run a judgement check yourself. Have a clerk help you. Some will attach to the property even after a foreclosure; best to know what is out there
You would not purchase title insurance until after the auction. You may be able to do some preliminary research online. Provided the foreclosure was done properly, there should be a clean title (all liens foreclosed) but liens are often missed in foreclosure actions. There may also be superior liens-taxes, water bills, other municipal charges, etc.
You do realize that you will have to pay the $12,300 mortgage also, correct? You should contact that mortgage holder to determine what is actually owed on that. It could be significantly higher.
Best of luck.
The foreclosure action will eliminate junior liens from the title to the property but some may have redemption rights which simply means that they would have to pay you off to redeem the property tin order to protect their interests. In most cases, if they had wished to so protect they'd have bid at the sale.
It appears, from the language you have provided that the second lien holder is foreclosing and that any successful bidder will also be subject to a first mortgage held by Charles C. That loan may also be delinquent so you will want to check the status of that lein before you commit yourself an, in deed,. will want to review that deed for the terms and conditions. The party conducting the forecloure may be able to supply you with that documentation for review.
I would contact a realator and do a title search, I would be concerned that the foreclosure is occuring on the second and the first is not in foreclosure.
assuming this is the first that is being foreclosed, the second normally disappears. You could have additional tax/utility/mechanics liens on the house.
You should be able to contact your local treasure's office, and find out if there's any liens on the property.
You wouldnt win the auction for $5,120.16. You will bid against other people who want the same property. Be prepared to pay almost what the house is worth.
Also be prepared to have the bankers bid against you. They want as much as they can get for the property. They will bid up to a certain amount, and then let you have it.
You also need to be pre-approved to purchase a foreclosure, from either a bank or a mortgage lending company.
You would also need a check for 10% of the purchase price on the date of auction. If you are not prepared, dont bid. Good luck!
It is always a good idea to get a title search and Title insurance. When a Title company conducts a search they will uncover defects in the Title that you have to deal with and may make the property difficult to sell in the future.
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