Re: Trustee sale and second mortgages in Arizona

Posted by Steele in Minnesota on September 08, 2005 at 10:27:19:

In Reply to: Trustee sale and second mortgages in Arizona posted by John Sanders on September 08, 2005 at 00:20:41:

: I am looking into trustee sales at the court house. I have found where they are all listed in the newspaper but still have a question.

: When the amount of the minimum bid is listed is this just the first mortgage ? And if you purchase it for this amount, are any seconds or liens wiped out by the forclosure sale ?

: Do I need to research the title or deed prior to bidding ?

: One last question, Is it possable to try to purchase prior to the forclosure auction / sale from the lender who is holding the title ?

: Thanks to all who respond. Im just getting into this and am trying to learn as much as possable.

: Thanks, John
*****************************

Lots of questions. Let me try and answer them as best I can.

It is best to do research as to all liens against a property. A first mortgage may not be one foreclosing. Typically if the first is foreclosing, other liens will be wiped out if it wins the bid. But if it is a second or other lien, the first would still be there. If it were a third place lien the first and second would be there. And so on and so on.

So you must know who is doing the foreclosing and if there are any others. A trip to the county courthouse is in order.

As I understand it there is no (usually) redemption period in Arizona so bidding at the Sheriff Sale is a viable alternative. As always, you will usually have no rights to see the interior of the property if the owner is still there. But you might be able to talk them into it. Nicely.

As to purchasing from the lender prior to the sale, the answer is "no". The lender does not own the property. They will only own it if they are the winning bid at the sheriff sale. Now you can deal directly with the owner before the sale. In most instances it is a good idea to have the lender involved as they may have to give their "blessing" to the sale, but you do not buy from them. So contact with both is a good idea.

If you do look into direct purchases do your homework. Double check those liens. Also check your state laws regarding purchases of property in foreclosure. More and more states have some very specific rules and regulations on doing this.

Do it wrong and you can be looking at some serious trouble with the State. I would check with a real estate attorney who is versed in foreclosure and works with investors.

Steele V. Propp
Foreclosure and REO Specialist
Minneapolis, MN
steelep@aol.com

Follow Ups:

• Re: Trustee sale and second mortgages in Arizona - John Sanders 21:52:07 09/08/05 (0)

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Comments:
: : I am looking into trustee sales at the court house. I have found where they are all listed in the newspaper but still have a question. 

: : When the amount of the minimum bid is listed is this just the first mortgage ? And if you purchase it for this amount, are any seconds  or liens wiped out by the forclosure sale ?

: : Do I need to research the title or deed prior to bidding ? 

: : One last question, Is it possable to try to purchase prior to the forclosure auction / sale from the lender who is holding the title ?

: : Thanks to all who respond. Im just getting into this and am trying to learn as much as possable.

: : Thanks, John
: *****************************

: Lots of questions. Let me try and answer them as best I can.

: It is best to do research as to all liens against a property.  A first mortgage may not be one foreclosing.  Typically if the first is foreclosing, other liens will be wiped out if it wins the bid.  But if it is a second or other lien, the first would still be there.  If it were a third place lien the first and second would be there.  And so on and so on.

: So you must know who is doing the foreclosing and if there are any others.  A trip to the county courthouse is in order.

: As I understand it there is no (usually) redemption period in Arizona so bidding at the Sheriff Sale is a viable alternative.  As always, you will usually have no rights to see the interior of the property if the owner is still there.  But you might be able to talk them into it.  Nicely.

: As to purchasing from the lender prior to the sale, the answer is "no".  The lender does not own the property.  They will only own it if they are the winning bid at the sheriff sale.  Now you can deal directly with the owner before the sale.  In most instances it is a good idea to have the lender involved as they may have to give their "blessing" to the sale, but you do not buy from them.  So contact with both is a good idea.

: If you do look into direct purchases do your homework.  Double check those liens.  Also check your state laws regarding purchases of property in foreclosure.  More and more states have some very specific rules and regulations on doing this.

: Do it wrong and you can be looking at some serious trouble with the State.  I would check with a real estate attorney who is versed in foreclosure and works with investors.

: Steele V. Propp
: Foreclosure and REO Specialist
: Minneapolis, MN
: steelep@aol.com


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