Does anyone know how to buy a property in foreclosure (or, ideally, before it goes into foreclosure) in NJ?
Question:
Answer:
www.ushud.com This web site will direct you to many foreclosed homes in your area.
yes.
get a realtor to assist you! the foreclosure process is complicated!
You can go the county recorder's office, and search the property address to see who is shown as the lender on the mortgage. Sometimes lenders have a website for forclosure listings. If you purchase a property in the process of foreclosure, be sure that you have a clean title.you just want the property, not somebody else's debts too.
You can contact the county assessor's office to find out when they publish their lists of these homes. These are called pre-forclosure properties.
Normally the owner has between 10-12 weeks to make up back payments. If you can contact the owners prior to the foreclosure sale, you may be able to work out a win/win situation.
1st, establish the value of the property.
2nd, you can view the deed through the county records.
If there is not 30% to work with, pass on the property.
3rd, have a title company run a prelimenary title search. This will show any outstanding liens on the property to date.
4th, contact the owner to see if he/she has an interest in working with you. You would be amazed at the number of people facing foreclosure would rather loose $30,000 than see you make a dime.
5th, If you can get together with owner have a contract signed with a "Subject To" clause. You will need to get a "Quit Claim Deed" and a power of attorney as well.
Enlist the aid of a realtor to walk you through this. You may find a good realtor that would help you do this for the listing. It would be thousands less expensive than an attorney at $300.00/ hr.
Regardless of the scam real estate ads that say "Buy with no money", you will need some cash to work with. A good rule of thumb would be 20% of the price of the property you are considering.
This is the readers digest version of how it works. That's the reason for working with an experienced realtor.
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