How do you find the mortgage balance on sheriff sale listings?

For those who work with sheriff sale listings…

My county posts the listings on the internet, what’s the best way to find out the mortgage amount on these listings? I know a title agency can search the liens on the property, but how can I have the title agency work with me? Is there another way?

if you find a way, i’d like to know. i was researching this exact same thing a few years back. i was told to get the mortgage book and basically do the general math of what they purchased it for and at what percent interest. this can give you a general idea, but i haven’t done it because it’s too time consuming.

by the way…what area in nj do you invest in again? i’m curious why we haven’t networked already

most of nj counties have their mortgage books online now… usually by the lender…

if its fha you can look at the fha rates at the time of the mortgage, if its adjustable their will be an adjustable rate rider… if not most of the time the rate is listed or you can figure it out based on the lender and time period…

Open excel and put the data you know into an amortization table… the new office 7 has one built into its templates… then just back out the general number and you will be fairly close.

Dont forget to add any sewer / tax / water liens which would be listed as tax sale certs on the county lookup sites.

Good question, but let me save you some time…if you are buying deeds or redeemable deeds through a Sheriff Tax Sale, there is really no need to worry about how much the mortgage is or even how many mortgages are on the property. After the sale, all of the mortgages are wiped out, except in the state of New Mexico. Your real focus should be on the other liens that may be on the property.

For example, in the state of Florida…Florida statute 197.522 provides in part, “ …except as specifically provided in this chapter, no right, interest, restriction, or other covenant will survive the issuance of a tax deed, except that lien of record held by a municipal or County Governmental unit, when such lien is not satisfied as of the disbursement of proceeds of sale under the provisions of Florida Statute 197.582, will survive the issuance of a tax deed.

this means that in Florida, the only liens that you may be accountable for ( if the disbursements of funds from the sale doesn’t cover it) are special assessments from a county or municipal agency…this means all you need to do is read the state laws for the state you plan to invest in. then research the title to the property(for free at the public records), and see if any of the liens that may survive the issuance of the deed sale are on there…if they are, then just add that amount to the total amont you are willing to pay for the property.

Michael Callahan
Tax Lien & Deed Advisor
Dir. Strategic Alliance Enrollment