First Subject to Foreclosure in exactly 30 days can it be done

[Wendy Busa]

New investor.

I am interested in a property that is in preforeclosure. The date for the auction is Jan.10th. I have not contacted the owner yet, because I am not sure how long the process of doing a subject to takes. I would never promise something that I could not follow thru on.

I would need to make sure there are not any liens, get a clear title, find out what is owed on the mortgage and taxes,

get a lawyer to create some documentation and have the deed signed over. 

Is this something that can be done with in 30 day?

I have read that the homeowner can still file for bankruptcy, is that correct and if so, is there a legal document that can be drawn to protect against this?

I appreciate all input. Thanks.

[Jared Prevost]

@Wendy Busa

This can be done in under 30 days yes, and often times if the seller can show they have a signed purchase agreement, then you can push back the auction date. I would recommend the seller work with a lawyer to push back the auction date. I'm in Florida which is a judiciary state, not sure if that process looks any different in Wisconsin.

Title work

Typically your title company will pay a lien search company to track down any existing liens on the property and figure out the amount that needs to be paid off on the property. From my experience, this can usually be completed in a week, but it can take up to a month if there are weird things going on with the property or uncertainty with liens.

To find out what is owed on the mortgage, you will need a loan payoff statement. This can be obtained through the loan servicer. You can get on a 3-way conference phone call with the seller and a representative of the loan servicing company and they should be willing to share the loan payoff amount. Sometimes they will need a written 3rd party authorization form.

For the taxes due, this should show up on the lien search. You can check the county property appraiser's website to see how much property taxes are currently.

If you are looking to buy 'sub to' there are some very specific recommended ways of purchasing the property. I would either work with an attorney or partner with a seasoned sub to investor to make sure this is done correctly. (I think missing out on a sub to deal is better than buying a sub to deal incorrectly).

Timeline

It's possible to buy a sub to deal in 14 days, having a 30-day timeline will take the pressure off you though, and allow for more thorough due diligence.

Deed Transfer

The deed will transfer at closing yes - I might work with an attorney-owned title company that has a reputation for closing creative deals to make sure it's handled properly.