InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Don't Fall In The Pit Posted by anne on June 18, 2003 at 4:39 PM In Reply to: Don't Fall In The Pit posted by SeanW on June 18, 2003 at 2:21 PM : Aside from prior liens? : 1) The property may be junk on the inside and you're wasting your money. : 2) You might buy a property with competing ownership interests. An ex-spouse or relative might own some of the property even after the sale. : 3) There could be an IRS lien on the property, which gives the IRS 120 days to redeem and buy it from the winning bidder. If they do this after you spend money fixing it, they will NOT reimburse you for your expenses. : 4) There could be city assessments, home association dues, delinquent property taxes. These may be senior to the foreclosing loan depending on local laws. And you might not find them in the register of deeds records... You could have to check the tax assessor, or superior court for these. : 5) The ex-owner might be vengeful and damage the property before moving. : 6) The property could be destroyed by whatever cause, before you get it insured. : 7) The ex-owner may refuse to move... and you spend a few months and attorney fees evicting him. : 8) The ex-owner might be mentally unstable, and shoots to kill! (This happened in N.C. recently-- one reason my family is not too thrilled with my ideas in foreclsoure investing.) : 9) You buy property that has environmental hazards, and it is too expensive to clean up. : 10) You just plain pay too much. Maybe you didn't properly anticipate all the related transactional costs beyond fixup (escrow, relators, title, buyer's closing costs)... Or didn't choose good comparables, to determine what the property should sell for after repair. : 11) You may discover the property has been under a zoning grandfather clause for non-conforming use. It's been a duplex under the previous owner... but it won't be for you! : 12) Unlicensed contractor working on the property injures himself, and you didn't have liability or worker's comp insurance. : ---------------------- : Fortunately, most of these things are avoidable with some due diligence. Follow Ups: Re: Don't Fall In The Pit anne 6:54 AM, 06/19/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Aside from prior liens? : : 1) The property may be junk on the inside and you're wasting your money. : : 2) You might buy a property with competing ownership interests. An ex-spouse or relative might own some of the property even after the sale. : : 3) There could be an IRS lien on the property, which gives the IRS 120 days to redeem and buy it from the winning bidder. If they do this after you spend money fixing it, they will NOT reimburse you for your expenses. : : 4) There could be city assessments, home association dues, delinquent property taxes. These may be senior to the foreclosing loan depending on local laws. And you might not find them in the register of deeds records... You could have to check the tax assessor, or superior court for these. : : 5) The ex-owner might be vengeful and damage the property before moving. : : 6) The property could be destroyed by whatever cause, before you get it insured. : : 7) The ex-owner may refuse to move... and you spend a few months and attorney fees evicting him. : : 8) The ex-owner might be mentally unstable, and shoots to kill! (This happened in N.C. recently-- one reason my family is not too thrilled with my ideas in foreclsoure investing.) : : 9) You buy property that has environmental hazards, and it is too expensive to clean up. : : 10) You just plain pay too much. Maybe you didn't properly anticipate all the related transactional costs beyond fixup (escrow, relators, title, buyer's closing costs)... Or didn't choose good comparables, to determine what the property should sell for after repair. : : 11) You may discover the property has been under a zoning grandfather clause for non-conforming use. It's been a duplex under the previous owner... but it won't be for you! : : 12) Unlicensed contractor working on the property injures himself, and you didn't have liability or worker's comp insurance. : : ---------------------- : : Fortunately, most of these things are avoidable with some due diligence. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction.

Copyright © 1997-2003, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455