Of course, we're talking about buying at the courthouse foreclosure auction. On a property listed on the MLS, you will normally get Title Insurance and there will be no worry about researching liens.... more
Is there a 1st mortgage and a 2nd mortgage? Are you the owner? Are you hoping to buy it for ALL CASH when it goes to the courthouse foreclosure auction? Are you under contract as a buyer for this property via a Short Sale?
Also JP Morgan and the new Bank may be mere "servicers" and do not actually own the mortgage(s). It could be Fannie Mae, Freddie Mac or an investment pool that actually owns the mortgage.
So my suggestion is if you're planning to bid (must have ALL CASH within hours of bidding, no clear title, no time to inspect for significant defects, high risk but possible high reward, etc.) at the courthouse foreclosure auction, pay for a title search and legal advise as to which liens will survive the foreclosure, "before" bidding. Also HOAs and Condos and Code Enforcement and IRS may have significant fees that may survive a foreclosure auction at the courthouse so you need to verify that, too.
If the property doesn't sell at the courthouse (if the lender doesn't allow it to sell below the final judgment amount then it will go back to the lender or to Fannie, Freddie, HUD or the investor) then you cannot buy it directly from the bank. They will list the property with a local Realtor and they will likely get multiple offers within hours of listing (many ALL CASH) so you should have your Realtor set you up with an automatic notification if you have a "personal" reason why you want to buy this particular property. Don't expect to buy at a bargain price and if you don't have ALL CASH you will be at a severe disadvantage because with the CASH offers from the investors "above" a price it can possibly appraise for you will not have a chance at buying most properties, sad to say... We are currently in a frenzy with Wall St. Investment firms buying up every viable property that can yield a good rental return.
If the Bank allows the property to be sold at the courthouse foreclosure auction below the final judgment amount, a cash investor at the courthouse may buy the property. That cash investor may put lipstick on it and flip it for a profit or they may fix it up and rent it out for the next few years to minimize the tax consequences.
Hope this helps.
All the best,
Alma Rose Kee, PA
Sold On Tampa Team
I see this coming up more often. What is happening is the foreclosure list in getting added to the home sale sights. The best way to get an idea if the foreclosed property is actually listed for sale is ask a Realtor to help you in your search.
They can check the MLS to verify the listing.
People's Choice Realty Service, LLC.... more