Your Questions About Foreclosures |

Your Questions About Foreclosures

Your Questions About Foreclosures

James asks…

What does “there is claimed to be due” mean on a foreclosed home? Is that what is owed on it?

I am looking into possibly buying a foreclosed home. I went to the house yesterday and there was a paper on it that said this guy defaulted on his mortage and “there is said to be owed” and then a $ amount. Is that what the guy owes on it or is that what they are selling it for? It also goes on to say that there will be a sale of the premises on May 29th at the court house. THanks for any help.

Your Questions About Foreclosures

The Expert answers:

The document you were looking at bears no relation to the price you will pay, so ignore it for now. If the house has not been to the auction yet, then you should try a skip trace to contact the home owner. You still have two weeks and he owns the house until it gets to auction. You might get the chance of buying it with less money out of your pocket by taking over the deed and catching up the loan and then making the regular monthly payments on his loan.

If you cannot find the owner, then it is likely that the house will indeed go to sale on the 29th and you will need to go to the courthouse steps to bid on the property at auction. You won’t be buying anything if you dont have the funds lined up, so start getting yourself approved now. If no one buys the house at auction, the lender will be selling it as an REO since they will own the house and the price they will be asking will be anyone’s guess.

If you have a real burning desire about what is owed or not, you can go to your courthouse, and ask to look up the address details under the Notice of Default (or Lis Pendens depending on your State) and you will be able to clarify the defaulted amount. Either way, it means nothing as to how much you will pay.

Your Questions About Foreclosures

Susan asks…

What to offer on this foreclosed bank home?

What is an appropriate starting offer to place on this home?

What is the maximum you would offer to pay on this home?

It was up for sale back in November 2006 by the owner, then bank took it over and listed in April 2007 and was at $139,000 now dropped to $133,000.

It has all galvanized plumbing, looks like it will need a new roof in about a year, possibly needs a updated furnace, basement is from the 60’s (out of date) and yard needs to be relandscaped.
6349 Cambourne Rd
Dearborn Heights, MI $ 133,000
3 Bedrooms, 1 Full Bath, 1 Half Bath

Year Built: 1957
Style: Ranch
Possession: IMMED
Subdivision: Lewis Manor Sub
County: Wayne

Approx. Square Footage: 1,026
Lower Finished Square Footage: 500
Garage Description: 2 Car, Detached

Taxes: $2,740
Mortgage Calculation

Living Room: 14×20
Kitchen: 11×11
Master Bedroom 1: 11×12 – Entry level
Bedroom 2: 11×11
Bedroom 3: 11×09
Basement: Finished
Cooling: Central Air
Heating: Forced Air

Your Questions About Foreclosures

The Expert answers:

Sorry, no free appraisal here, that is why you need to hire your own.

However, keep in mind that all of the details that you have listed is NOT relevant when making an offer on a foreclosure. The bank simply plugs the numbers into a computer, and has already a percentage range of what they will take for it, if you “hit” that number, they will accept your offer, if it’s low, they will hold onto it, and if it’s high, of course, they will accept it.

Buying a foreclosure is not the same process as buying a resale home.

Your Questions About Foreclosures

Thomas asks…

What is a good website for locating Indianapolis/Marion Co. foreclosures for sale?

I’m in the market to buy a home for the first time, and while looking I was told to also include some foreclosed homes. Unfortunately, I’m having trouble locating a suitable website that focuses on this area and solely has foreclosures.

Your Questions About Foreclosures

The Expert answers:

Call a realtor in that location they will be able to give you a good idea

Your Questions About Foreclosures

Nancy asks…

filed chapt 7 due to 2 homes (to be foreclosed in future) county tax bills received, and tax refund garnish?

had homes and got behind on pmyt. ended up filing chapt 7 and waiting for results from the court. 2 homes to be eventually foreclosed… now, i got county property tax bills saying i gotta pay, yet my lawyer said not to pay because banks should get it paid when foreclosure sale.

a friend said if i get tax refund, since im behind, money might get taken away due to that property tax bill not paid.

is it true….?

Your Questions About Foreclosures

The Expert answers:

Generally NOT for property tax bills. It will be settled in the foreclosure case, eventually. Bankruptcy cannot wipe out tax liabilities.
Tax refunds are not garnished, but can be grabbed for certain defaults.

Your Questions About Foreclosures

Steven asks…

Own two homes, one might get foreclosed on, what can happen?

I am wondering … we are about to take on an FHA loan at a much better interest rate and have our current home up for sale without a sign out front, so we can at least rent it out until it’s sold one day. We feel renting it out here, will save us from foreclosure until it’s sold, rather than just walking away and not paying anything on it at all.

My question is, if we can’t keep it rented and end up not being able to avoid foreclosure, can they take your new home or garish your wages if a foreclosure does happen?

Brenda from N.H.
I should mention that we are acting quick to buy something else under FHA because the current loan we have on the house is above 11% and we can’t afford the payments where they were Adjustable. We want to get into something else before we are homeless!
I am NOT able to refinance the loan with FHA on my current home, or can I get a fair deal on rates on a regular conventional loan. I must sell the current home!

Your Questions About Foreclosures

The Expert answers:

Although, I’m not sure about the specifics regarding NH law, but to answer your question generally speaking, yes. If you go into foreclosure and are left with a deficiency balance, then your other assets and income are at risk.

Edit: This is usually a judgment being entered against you for the difference in what you owe the lender and what they are able to sell it for.

If selling quickly to a retail buyer is not an option, and you have someplace else already – check with one of the larger investment companies in your area that advertise ” we buy houses” fast.

You maybe able to work out a plan with an investor that will lessen the financial and maintenance burden of not being able to get out of the mortgage now.

Some of these companies will offer you some cash upfront in exchange for a land contract on your property or an option to buy. This may be a way to at least keep or bring the mortgage current.

Best of luck.

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Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures
Your Questions About Foreclosures

Your Questions About Foreclosures

Your Questions About Foreclosures