How to find lis pendens and preforeclosures

[hiknapster]

jmartin, please take it as a compliment. And I did not know they were going online. Great info. Yes, that procedure is not for the dim or faint of heart, but the rewards are great.

By the way, do I know you? I know a J. Martin from that area. Were you ever in automotive repair?

Here is an excellent article about HAFA, the new short sale rules that will speed everything up. I'm not sure if you are aware of HAFA, nhkev.

I urge everyone interested in short sales to read the article. It explains what is going on right now very clearly.

And for those that didn't know, it also says that a foreclosure will knock 200 points off of your credit score and a short sale will only make your FICO go down 100. Bad, but not as large of a mountain to climb.

Anyway, short sales may double this year if HAFA works. So far, banks have not been cooperative with trying to get us out of this mess, but as this article explains BofA is read to knock out those short sales.

Here's a short synopsis:

Under the new Home Affordable Foreclosure Alternatives program, borrowers will earn a $3,000 "relocation incentive" and servicers will get $1,500 for handling a short sale.

The investors who actually own the mortgage notes will get $2,000 in exchange for sharing proceeds of the short sales with any second-lien holders. And, finally, those second lien holders will receive up to $6,000 for releasing their claims.

Lenders participating in the program must also determine the market values of properties early on and inform the owners of just what price they're willing to accept. Then, if owners come back to the lenders with bonafide offers, they have to be accepted within 10 days.

That's a far cry from waiting for months to hear from the bank. There are a lot of scammers out there, as usual, saying they can help with short sales. Be careful. Stay away from lists. Some of those foreclosure lists are people that have missed one payment. I don't think they are worth the money.

Short sales: A better alternative to mortgage modification - Mar. 29, 2010

[justNancy]

I wish there was more protection for the buyer when dealing in short sales. At least with a foreclosure the bank will give you a clear title. I realize there are people experienced with the short sale process, but that doesn't make it fool proof. Every time I hear the word "expert" I'm reminded of the financial planner who assured me my investments were safe. If I only wore a wire that day. We learn from our mistakes.

Trust No One

"The X-Files"

[nhkev]

hik I'd give more rep points but I have to spread around. I wish you had found the article before I posted.... than I wouldn't have had to post, it says just about everything I said but with more detail. The big banks have been holding seminars on how to handle these and the biggest advice I can give somone that is not a cash buyer is this..

If you find a house that you like that is a short sale that has been approved by the lender- get your pre approval from that lender , even if you have been pre approved by another bank, regardless if you plan to use them as a lender they will likely only consider offers they approved themselves.

[SoFLGal]

The other issue with buying from the courthouse/auctions is the lack of inspections. Like was said before, you bid on the home in the morning and pay in cash by the end of the day. You can drive by the home but that's about it. You don't know if the home is trashed inside, if it potentially has Chinese Drywall, etc.

There was just a story a few days ago on WINK News talking about some people that were buying homes at auction and they were breaking in the homes and "inspecting them" prior to placing a bid. They got arrested for breaking and entering.

Many of the homes are still occupied so you would also have to deal with evicting the former owners once you purchase the house. Buying from auction is not for the faint of heart.

[Big House]

Originally Posted by jrmartin.mig

Haha, I guess I'll take that as a compliment as I have purchased a significant amount of property there over the last year! In all honesty though, dont worry about going down there to watch and learn as the whole auction goes online starting next week. Be very careful though as I have seen many unprepared people lose a great amount of money down there. Also, keep in mind that if you plan on buying at the courthouse or through their auction, plan on cutting the bank out as you must pay the full amount right now by 4pm and next week by the next day. It is however, a great way to get a great house at a great price.

Once you buy a house that way, its yours. And buying at one of those auctions is hugely risky. You can't go into them and inspect them. If you buy one that has huge problems, like Chinese Drywall - You're Stuck, and could face a huge loss. Or if there are 10's of thousands in back taxes due, they have to be paid by the buyer, or if there are other liens, code violation charges, and things like that you can be stuck for a huge amount of money as well. Yeah there are some good deal, I think, but there are huge risks. I would think that most buyers would want to really have a quality inspection done, and go through a regular purchase through a realtor, and have the piece of mind that they own it, with a clear title; especially since you have to pay for the house 100% in cash the day of the auction. - Pretty high risk, I think. But, people that know what they are doing - do it.

[Big House]

Originally Posted by SoFLGal

The other issue with buying from the courthouse/auctions is the lack of inspections. Like was said before, you bid on the home in the morning and pay in cash by the end of the day. You can drive by the home but that's about it. You don't know if the home is trashed inside, if it potentially has Chinese Drywall, etc.

There was just a story a few days ago on WINK News talking about some people that were buying homes at auction and they were breaking in the homes and "inspecting them" prior to placing a bid. They got arrested for breaking and entering.

Many of the homes are still occupied so you would also have to deal with evicting the former owners once you purchase the house. Buying from auction is not for the faint of heart.

I posted above you before I read down to your posts - sorry. But, I was thinking the same kinds of things. So, often times people are still living in them at the time you buy them!?! I almost bought one that way in MD before I came down, and the place was totally trashed. The HVAC was stolen, the ductwork inside was hanging out of the ceiling. The appliances were gone, the cabinets were all damaged, in one house I looked at the cabinets were taken out. I saw one where they even removed the trim from all the rooms. I've inspected a number of foreclosures (these were auctioned) that had Chinese drywall - there are a lot of them. It can costs 50K to restore a house to liviable condition if it has CWD - and that's just a ball park.

Why would you want to risk that, when you can get a tremendous deal right now buying a foreclosure or a shortsale?

And, I did see the news report where a couple people were arrested for breaking and entering! That's a huge bone head move!! LOL I was laughing at how stupid people are!

[Halifax2011]

A year later, and the Lee County foreclosure auctions are now set up online. You can check the auction calendar and see what properties are coming up for auction on what dates:

https://www.lee.realforeclose.com/in...ethod=CALENDAR

-----------------------------------------------------------------------------------------------------------------------------------

I have a question regarding Lis Pendens properties (that have not been scheduled for auction) ...

Is there any way to check the LeeClerk.org website (or any other "free" website) to find out what properties are currently in Lis Pendens status (preferably with a 'Sort' function where the properties can be sorted/listed by Street Address or Property Owner) ? Or am I stuck having to subscribe to Realty Trac or some similar type of website ?

[TamRE]

A lis pendens is notice of a pending lawsuit against a property owner. It is a public notice recorded in the same location where the title of real property has been recorded. It is usually filed in the county records. It lets the owner know that a lawsuit might later affect the title. A lis pendens is not a lien. It is only a lien when the lawsuit is successful, then it becomes a lien. This will in turn have an affect on the title.

Foreclosure is the enforcement of a lien. It is accomplished by legal proceedings in court as the result of nonpayment of a debt. Foreclosure terminates the rights of the owner and results in the public sale of the property used to repay the lien. If the sale does not bring enough money to pay the existing balance on the mortgage, the lender can file a claim for deficiency judgment.

A deed in lieu of foreclosure is an alternative to a foreclosure sale. A mortgagor who is in default can voluntarily deed a property to a lien holder in lieu of payment of a debt. It offers several advantages to the borrower and the lender. It releases the borrower from personal debt associated with the loan. The borrower also avoids public notoriety of a foreclosure proceeding. And lastly, it does not hurt the borrower's credit as much as a foreclosure.

Seek advise of a real estate lawyer if you are involved in any of the above situations.