Title Holding Trust
50 State Foreclosure Basics
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Foreclosure Work Flow
(Tips in Working Foreclosures)
by Ward Hanigan
- Create Two Indices
- Alphabetical index of trustees (with their addresses and phone numbers)
- Calendar index, by sale date (for tracking sales/postponements)
- Create a full-sized foreclosure worksheet that you can work on without abbreviating everything (so that it'll still make sense months later).
- Chronology of work effort
- Call the trustee first to be sure it's still "on" before putting in any time.
- Verify the sale date, time and location.
- Ask (whoever you've developed rapport with) to vouchsafe your research regarding loan priorities, IRS liens, etc.
- Look at the CD/ROM or web-based property information service for information on your target property.
- Verify the legal description, the address, etc.
- Locate the property on the plat map. Then you will know precisely where it's located when you're in the field.
- Pick up property info, grant deed & concurrent trust deed document numbers, etc.
- Look at adjacent neighborhood entries for comparables, etc.
- Check the MLS, the AIRD and/or other sources to establish retail value.
- Establish the trust deed's priority.
- Look in the county recorder's grantee/grantor cross-index in the appropriate years to find other trust deeds, reconveyances, subordinations, general liens, et al that are of public record.
- Determine the equity available and compute your maximum bid amount calmly . . . before going to the sale.
- Verification of your data.
- Verify all the info on your foreclosure notice regarding the sale date, time, location, etc. by looking at a copy of the Notice of Trustee's Sale.
- "Private party" beneficiaries can be a wealth of knowledge regarding the property, trustor, tenant, value, last sale, etc
- Title companies will fax you specific document info just for the asking (but avoid their "property profiles" since they are mandated incomplete by the insurance commissioner).
- Drive by and look at the property, the comps, the neighborhood and local sales activity. Take a digital picture of the property
- Final Steps
- Get the "date down" info from the trustee late in the afternoon, the day before the sale.
- Go online to PACER (the bankruptcy court's web site) and check to see if a bankruptcy has been filed or if a relief from stay has been granted, etc.
- Get your bank-issued checks (cashier's checks are preferred) in doubled-up denominations - made out in your name (so you can endorse them over to any trustee at any sale).
- Call the trustee a final time, just before leaving for the scheduled sale, to verify that it is really "on" this time.