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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Six questions answered... Posted by Ward-CA- on November 16, 2003 at 0:02 AM In Reply to: preforeclosure questions for ward and joe z posted by fred on November 15, 2003 at 5:13 PM : Greetings, : I am not an investor but am interested in purchasing a piece property. The owner is an alcoholic who has not paid his mortagage in a couple years. I have a friendly relationship with the lender and ex-owner. I was arranging to pay off the debt in exchange for the deed, when I found out this was not legally possible. : The lender(OWC) sold a two parcel piece of property zoned for timber after he logged it. the new owner then sold one parcel and thus transferred all the debt onto the new buyer. I am not sure if foreclosure would affect both of these owners or just the most recent buyer. : Questions: : 1. How do I find out if the foreclosure proceedings would affect both or only one of the current owners? (neither the owner I know nor the lender seem to know) Ask the title company? WOuld they release that information to me? : 2. Is it better to talk to the current owner before foreclosure proceedings are announced? or worse? : 3. Stupid question: In a preforeclosure sale do I need to close escrow before the date set for auction? (I am assuming so but just want to be sure) : 4. How does one find a fair market value when there are few properties comparable? This is similar to joe z's situation 9/11/03, where values in the neighborhood varied drastically. Joe--what did you bid? what did you end up paying and how did you figure out what bid to start with? and how did you limit your bidding price after that? : 5. specifically (anyone can put their two cents in here): it's on the tax rolls as worth only about $5,000 because it's zoned timber (been logged) and is unimproved. but current owner paid 60,000 years ago and considering california's price jumps this year, could now be worth 300,000. (maybe not, since zoning and perc tests are a problem) Anyhow, the "potential" value is why I don't want to risk going to auction. Someone out there may want it besides me. How do I figure out what it's worth? : 6. Best case scenario would be offering him something to relocate and getting deed in lieu, with existing financing, since I'd rather deal with the amicable lender. Any suggestions on how to get what i want? : thanks =============== Fred, Answers: #1. CA law requires that the recorded Notice of Trustee’s Sale (NTS) recite the legal description of the property/ies being sold at the Trustee’s Sale. So ask your local title company to fax you a copy of the NTS and it will contain the answer as to what property is subject to sale. #2. I never to talk with the defaulting property owner prior to the trustee’s sale if I intend to bid at the sale. That way I can’t be charged with knowing something that’s not recorded in the public record. Has saved my hide a few times. #3. No, all that needs to be done is to cure the foreclosure before the trustee’s sale date. You can close escrow at any time. #4. To find enough comparables we use three different sources. We use our local Multiple Listing Service (MLS). We also use a monthly service for San Diego County called the Appraisal Institute Residential Database. AIRD (www.airdport.com) is located in Costa Mesa, CA. Finally, we use DataQuick’s monthly CDROM for San Diego. #5. Put yourself in the present owner’s shoes. What current market value do you think he would place on the property? Could you profit if you paid him that much? If not I’m sure you’ll be able to figure what price would make sense to you. #6. To get a deed-in-lieu of foreclosure you’d have to be the beneficiary of the loan in default. Since a deed-in-lieu doesn’t wipe away any junior liens or interests, I’d do a thorough title search to make sure the title isn’t burdened any more than you think it is. Hope this helps. Follow Ups: I never to talk with the defaulting property owner ... Dave 8:09 AM, 11/16/03 (2) Here's an example... Ward-CA- 5:01 PM, 11/16/03 (1) Thanks! (nt) Dave 11:20 AM, 11/17/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Greetings, : : I am not an investor but am interested in purchasing a piece property. The owner is an alcoholic who has not paid his mortagage in a couple years. I have a friendly relationship with the lender and ex-owner. I was arranging to pay off the debt in exchange for the deed, when I found out this was not legally possible. : : The lender(OWC) sold a two parcel piece of property zoned for timber after he logged it. the new owner then sold one parcel and thus transferred all the debt onto the new buyer. I am not sure if foreclosure would affect both of these owners or just the most recent buyer. : : Questions: : : 1. How do I find out if the foreclosure proceedings would affect both or only one of the current owners? (neither the owner I know nor the lender seem to know) Ask the title company? WOuld they release that information to me? : : 2. Is it better to talk to the current owner before foreclosure proceedings are announced? or worse? : : 3. Stupid question: In a preforeclosure sale do I need to close escrow before the date set for auction? (I am assuming so but just want to be sure) : : 4. How does one find a fair market value when there are few properties comparable? This is similar to joe z's situation 9/11/03, where values in the neighborhood varied drastically. Joe--what did you bid? what did you end up paying and how did you figure out what bid to start with? and how did you limit your bidding price after that? : : 5. specifically (anyone can put their two cents in here): it's on the tax rolls as worth only about $5,000 because it's zoned timber (been logged) and is unimproved. but current owner paid 60,000 years ago and considering california's price jumps this year, could now be worth 300,000. (maybe not, since zoning and perc tests are a problem) Anyhow, the "potential" value is why I don't want to risk going to auction. Someone out there may want it besides me. How do I figure out what it's worth? : : 6. Best case scenario would be offering him something to relocate and getting deed in lieu, with existing financing, since I'd rather deal with the amicable lender. Any suggestions on how to get what i want? : : thanks : =============== : Fred, : Answers: : #1. CA law requires that the recorded Notice of Trustee’s Sale (NTS) recite the legal description of the property/ies being sold at the Trustee’s Sale. : So ask your local title company to fax you a copy of the NTS and it will contain the answer as to what property is subject to sale. : #2. I never to talk with the defaulting property owner prior to the trustee’s sale if I intend to bid at the sale. That way I can’t be charged with knowing something that’s not recorded in the public record. Has saved my hide a few times. : #3. No, all that needs to be done is to cure the foreclosure before the trustee’s sale date. You can close escrow at any time. : #4. To find enough comparables we use three different sources. We use our local Multiple Listing Service (MLS). We also use a monthly service for San Diego County called the Appraisal Institute Residential Database. AIRD (www.airdport.com) is located in Costa Mesa, CA. Finally, we use DataQuick’s monthly CDROM for San Diego. : #5. Put yourself in the present owner’s shoes. What current market value do you think he would place on the property? Could you profit if you paid him that much? If not I’m sure you’ll be able to figure what price would make sense to you. : #6. To get a deed-in-lieu of foreclosure you’d have to be the beneficiary of the loan in default. Since a deed-in-lieu doesn’t wipe away any junior liens or interests, I’d do a thorough title search to make sure the title isn’t burdened any more than you think it is. : Hope this helps. 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

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