Foreclosure Property W/Subject to mortgage

[Satish Kumar Kommineni]

Hello Fellow Members,

I am interested in a property which is up for sale in County Sheriff sales. I've never been to foreclosure sales and wanted some input from experts. I am planning on taking the deposit amount as cashiers check and fill the form which they need in case of successful bid. I see that in Terms & Sales of property, it is mentioned that the property is Subject to the mortgage of  bank.

Here is the research I have done on the property:

1. In good school district and safe neighborhood.
2. 10 years old, which is relatively new.
3. By going though the county records, I came across the property Appraisal price and came up with rough estimate of what the borrower might have paid off on the mortgage for the duration they are in the house, based on that I set up myself a maximum limit on the price I can buy the property for.
4. If I am able to get the property for the price I am aiming for and keeping into account for miscellaneous expenses,  The property easily meets the 1% rule for Buy and Hold strategy

Apart from above mentioned points, Could anyone please throw some light if there is anything i need to find out about the property?

Thanks,

Satish K

[Wayne Brooks]

@Satish Kumar Kommineni Please, please sit down with a real estate for an hour.....tell him what you want to do and let him tell you what to look for....it will be the st $200-300 you can spend.

A “first mtg” is the first one recorded (ie an owner has 2 mtgs, one for $150,000 and one for $30,000) and is superior to the second mtg.  If the first mtg forecloses, the second mtg gets wiped out, goes away.  If the Second mtg forecloses, the buyer inherits responsibility for the first.

There are many things to look out for in a foreclosure....hoa debts, past property taxes, city/county code violation liens, irs liens, etc.

It is strictly buyer beware and you can lose all or most of your money if you do it wrong.