Court grants foreclosure in favor of lender - now what?

Question

Hello,

I read through all the documents of a house here in Windermere Florida for the purpose of educating myself on some of the nuances of foreclosure here in FL.

The couple bought the house in 2008 and immediately in 2009 was trying to rent/sell, likely in over their heads. They had a 650k note and at some point stopped making payments.

The 1st document leading up to the foreclosure was 6/2013 with several thereafter like them filing bankruptcy twice, mediation for which the couple did nothing to follow the plan or pay so the trustee recommended to the court to not approve the plan, frivolous filings to the court to stall the process (one documents states they challenged who actually owned the Note in addition to several other challenges).

Now after all of the stalling tactics there is a court date set for a non-jury trial in June-2017.

Say the court grants the foreclosure giving the lender back the property, what happens next?

Seems like this couple has done everything to stay in the property so can they appeal yet again stopping the lender from taking back the property?

Jay Hinrichs · Answer

@Jeff Copeland   our county sites here are not super accurate.. and we have both trustee sales and sherrifs sales.

there is a product called property Radar  that tracks trustee sales in 3 or 4 states but they have a HUGE amount of other data on their site including google and non owner occ color coding..

its like 50 a month and boy is it one of the best I ever have used.

I got a STRICT foreclosure here in Oregon in Nov. which non of the big foreclosure buyers were tracking and I credit prop radar for that one.. its has HUGE margins in it.. Hoarder extreme and I am subdividing it to create the huge margin..

but anyone on the west coast in our business should really have that app.. but I am a map guy so it really is something I enjoy... saves us from having to go to a bunch of different sites.

but then once we identify I have the title company pull the NOD or whatever action is on it. and go from there.. simple call to customer service and I have the doc in 90 seconds on my computer..

Jeff Copeland · Answer

As @Wayne Brooks stated above, once the court grants the foreclosure judgment, then the County will schedule a foreclosure auction a month or two thereafter.

The official site for the Orange County foreclosure auctions (which are done online) is https://www.myorangeclerk.realforeclose.com/

Pinellas County (where I'm located) uses the realforeclose platform as well, so I'm somewhat familiar with the process. It is explained in detail here: https://www.myorangeclerk.realforeclose.com/index....

NOTE THAT YOU DO NOT NEED TO PAY A SUBSCRIPTION OR A FEE TO ANY WEBSITE OR SERVICE TO RECEIVE THE COUNTY FORECLOSURE AUCTION INFORMATION.

The lender will basically have a "credit" for the amount of their foreclosure judgement at the auction if they choose to keep the property and sell it off as an REO. On a $650k note, this is likely to be a large number, especially when the late fees and accrued interest are added on top.

What often happens in these cases is no one bids higher than the foreclosure judgment amount, so the property goes back to the bank.

From there, the bank will begin the process of listing it for sale as an REO - almost always with a broker on the MLS. Depending on the bank (and their backlog, work flow etc) and the complexity of the title work required, you would likely see it hit the MLS as an REO listing in 2-6 months after the foreclosure judgement, give or take a few weeks.

NOTE THAT YOU DO NOT NEED TO PAY A SUBSCRIPTION OR A FEE TO ANY WEBSITE OR SERVICE TO RECEIVE REO LISTINGS - ANY REALTOR CAN PULL THEM UP ON THE MLS.

John Thedford · Answer

The owners can also give a deed if lieu. You CAN purchase the property prior to foreclosure. I have done that once and got a good deal. Not all foreclosures are good deals--and be careful to make sure, if acting as a buyer, that all liens are paid at closing. ALWAYS use a title company for your safety.

Jay Hinrichs · Answer

well the lender either sets an opening bid that will entice local investors to bid on the property and its sold at auction.. or the note holder ends up with OREO...then generally lists it with a OREO broker to sell on the open market for as much as they can get for it..

Daria B. · Answer

@Jeff Copeland just thought of this after I posted - there is an HOA lien on this property that is not erased after sale. Is it that the minimum bid amount is set to cover all these costs and paid to the lien holders afterward?

Daria B. · Answer

@Wayne Brooks, @Jay Hinrichs, @Jeff Copeland, @John Thedford

Thanks for your contribution!

@Jay Hinrichs in this case the Note owner is not any of the larger banks. I don't think it's necessarily a hedge fund, could be, so I am assuming the holder is someone in-between a hedge company and a small Note investor who is selling.

@Jeff Copeland you're in my area, so to speak, I am in Gainesville. Thanks for the links. The property was BPO at $850k (not sure what timeframe) and at the time the itemized filing $ topped $833k that included interest, late fees. I was looking to this property for the purpose of educating myself on foreclosures from the Note perspective - not really looking to "get" the property but I understand from owning Notes that it happens. I was also looking at it to get the history and learn a little about the borrowers through the filing - actually says a lot after reading all the docs. Either their attorney suggested these tactics or they approached their attorney - all in all it allowed them to stay the foreclosure for over 3 years. I was contemplating whether it would even be good to purchase the Note (if) the borrowers were able to continue to give push back as they have done for the 3 years.

@John Thedford At what point did you approach the borrowers for a DIL? Did you have to wait for the final judgement or was it simply contacting them. I found after reading all these docs that several things can delay the process of foreclosure - I almost think the attorneys know this going in and have had the "next" motion paper already ready to file. :-|

Jeff Copeland · Answer

@Jay Hinrichs - Funny you should ask - I googled "Orange County FL foreclosure auctions" to find the correct site for my reply above, and most of the results were paid sites that charge a fee for what's actually provided for free on the official county website.

The fact that the counties outsource it to Realforeclose makes it even more confusing (since the "official" site is hosted by a third party). I just hate to see people pay for something that is actually free!

Jay Hinrichs · Answer

@Jeff Copeland  based on your post there must be services that sell these lists there in FLA

those list were helpful in the day before everything got on line ....

Daria B. · Answer

do you've now what happened with whomever holds the Note? There is a lot of debt on this property, twice the Note has changed ownership. @Wayne Brooks

Wayne Brooks · Answer

An auction is scheduled at that FJ hearing, usually 45-60 days out.

Court grants foreclosure in favor of lender - now what?

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