Dedicated to all things X-Tina.

Hey, RE investors! I’ve got a deal for you. Do you want to make an easy +$40,000 dollars?

Then head to the Sacramento Courthouse this Monday, September 20th, and buy 4932 Dewey Drive!

Bidding starts at $135,900.

The fun starts Monday, September 20th, at 13:30.

The fun starts Monday, September 20th, at 13:30.

I’d tell you to check out the estimated debt, but you’d then think I’m just making stuff up, because nobody would ever owe so much money… right 

Check out Zillow.com:

Sweet passive income!

Sweet passive income!

You need to consider a couple of things, though. From CampIdiot, a friendly dot posted the following:

I asked my wife about this, she does this foreclosure stuff for a living. Some country records are online. She says if it was in another county, she could look it up online to see what loans were paid off but she doesn’t know about Sacramento and isn’t interested enough to go look for it. She said the $135,900 first bid amount could be any of the loans. Any of the loan holders could forclose.

For example, she said if Well Fargo was still owed HELOCs, they could foreclosure even though they are the junior lender.

If you buy the propery at auction, you inherit all the loans that were senior to the lender that is foreclosing. So, if there are HELOCs junior to a larger mortgage that is senior and you buy it at auction via the junior foreclosure, you now owe the senior larger mortgage debt. Additionally, she says if there are IRS liens, you owe those since they are senior to both and they can take the property if you don’t pay them off. She said you could find out which lender was foreclosing if you looked at the court records but she doesn’t deal with Sacramento properties so she doesn’t know if it is online or whether you have to go to the courthouse. It is public record in any case.

If someone thinks this is a good deal because of the value of other properties in the area, you need to look at who is foreclosing, who is junior and senior and whether there are liens tied to it as well. Just because you buy it at auction doesn’t mean you get it free and clear and doesn’t mean other debt and liens aren’t still attached to the house (that you are now responsible for).

here is a quick, good one page explanation of the whole loan and lien priority thing in foreclosure

 

I made a small poll. Bear in mind, you can choose multiple answers.


Onlyone other small detail: would you live, sleep and eat where Casey Serin once lived, slept, and ate?

James Marks
Not losing any hope… yet,
September 19th, 2010

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Comments on: "This week’s RE bargain (or “Easy Money”)" (15)

  1. Murst, bitches.

  2. TwasNotAFart said:

    “would you live, sleep and eat where Casey Serin once lived, slept, ate, and cuked?”
    fixt

    • UNNNNNGH

      By the way, does anyone know if anonymous dot from CampIdiot is right?

      • Basically, yes. There’s a youtube video by foreclosureradar that someone linked to somewhere that shows the process, but one of their warnings was don’t bid on the address, read the docs because you are buying what is in the docs. I think the dot is correct but in today’s market no second is going to bother filing foreclosure because 99.9% of the time the first loan plus costs will be more than the market value.
        Someone could check the details on Dewey but I’d guess it’s the first mortgage that is for sale. The starting bid appears to be around the market value of the place.
        Funny old world, Casey’s parents’ place is about to become a fix’n’flip.

      • Thanks Arthur. Due dilligence is the key here, I suppose. Yeah, it’d rock if someone got the house at $136K and sold it for a profit in a couple of months…

  3. I don’t think so, IT would have to be a clear deed. Otherwise it would be such a mine field no one would ever bothering going to the courthouse steps.

    Bplugz

  4. excellent post

  5. sprezzatura said:

    Tax liens maybe, but HELOC debt? I can’t imagine that gets picked up buy the new buyer, otherwise NONE of these massively underwater properties would be worth buying.

  6. Small Animal said:

    Are you going to video the proceedings James? It’d be great if you could stream it, so we can all watch. Perhaps you can get Casey to help you with the technical Details(C) of such a thing

  7. debt forgiven tax, see, my parents had over 350K debt on the house, if it was sold at 130K then lenders would’ve taken 220K in losses. in eyes of IRS, that’s 220K in debt forgiven, which is considered income… hmmmm, good thing is IRS has already accepted my A4V… so it’s all good.

  8. We’re going to have to wait some more.

    [quote=]No troll, it’s been pushed out to October 20th. 😡

    T09-54538-CA
    http://www.priorityposting.com/ppp/viewauctions.asp

    It looks like they refiled their bankruptcy case.

    Reason postponed: Postponed to 10/20/2010 @ 01:30PM – BANKRUPTCY[/quote]

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