Foreclosure Auction - Question(s)

Foreclosures, Short Sales, Tax Foreclosures
1

I am considering biding on the property at the foreclosure auction.
I know the neighborhood and the market value pretty well.

I have few generic questions:

  1. Can I get title insurance on the foreclosed property?
  2. What is the most effective way to ensure that there are no liens on the property?
  3. If the auction is scheduled for May 5, is there way to buy it directly from the lender before that?
  4. If the house has PRIMARY MORTGAGE AND HOME EQUITY LOAN, How is it handled at the foreclosure? Do they just sum up two loans into one TOTAL amount as a starting bidding point?
  5. I did preliminary check and it looks like the owner transferred the deed to an LLC.
    Does this create an issue at the foreclosure auction?
2

when i hit reply your questions disappeared so they’re not in front of me.

have an attorney do a title search to find out about liens.

contact the lender and ask if they’d consider selling it to you before the action or just send them an offer.

if there is a second mortgage it should be wiped out at foreclosure. the first mortgage holder is usually the one foreclosing. the second is SOL.

3
  1. Can I get title insurance on the foreclosed property?

Why would you want to?

  1. What is the most effective way to ensure that there are no liens on the property?

A property profile from a title company

  1. If the auction is scheduled for May 5, is there way to buy it directly from the lender before that?

No. It does belong to the lender.

  1. If the house has PRIMARY MORTGAGE AND HOME EQUITY LOAN, How is it handled at the foreclosure? Do they just sum up two loans into one TOTAL amount as a starting bidding point?

Well, speaking for Cali only, no. Only the 1st TD gets paid, subordinate loans are wiped.

  1. I did preliminary check and it looks like the owner transferred the deed to an LLC.
    Does this create an issue at the foreclosure auction?

No.

4

  1. Can I get title insurance on the foreclosed property?
    You cannot get title insurance coinciding with your purchase at auction. You will be able to insure title down the road when you sell or finance.

  2. What is the most effective way to ensure that there are no liens on the property?
    You need to be able to do your own title search work. Paying an attorney or title company will suck you dry if you are going to pursue foreclosure properties consistantly.

  3. If the auction is scheduled for May 5, is there way to buy it directly from the lender before that?
    Until the auction the only entity that can sell the property is the owner.

  4. If the house has PRIMARY MORTGAGE AND HOME EQUITY LOAN, How is it handled at the foreclosure? Do they just sum up two loans into one TOTAL amount as a starting bidding point?
    Which one is foreclosing? What state are you in? You need to understand the laws and foreclosure process in your state - the laws vary greatly. And once you understand the foreclosure process then you need to be absolutely certain of what you are bidding on - 1st, 2nd, etc. Otherwise your foreclosure-related career will be quite short.

  5. I did preliminary check and it looks like the owner transferred the deed to an LLC.
    Does this create an issue at the foreclosure auction?
    No - but it may be an indication that someone has worked a deal with the owner and acquired the property with the intention of reinstating or paying off the loan. What was the timing of the transfer? It very well may not go to auction.