Sat, Jul 04, 2009
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tomtomtom
13 Posts
Member Since: 02/21/2005
Maplewood, NJ
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Posted: 10:35 on 02-22-2005
I've learned so much since finding this site but i still need some advice to help tie everything together. Im a first time investor and my goal is really to buy my first home to live in. I have about 12k saved and i found a preforclousure in the paper which will go to auction in about a month. The total judgement amount is $8,114.34 and the listing had no mention of leins or any additional fees. My question is what should be my game plan or more so what would you do?
Thanx
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tomtomtom
13 Posts
Member Since: 02/21/2005
Maplewood, NJ
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Posted: 11:43 on 02-22-2005
Basically what i want to know is if i get in contact with the owner and get them to agree to turn the house over to me what kind of contract do i use . ie a promisary note, a notary? or is there some way to have the title transferred to me once the balance is paid .(assuming i already have a separate deal worked out with the owner)
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bgrossnickle
2349 Posts
Member Since: 10/22/2003
Heathrow, FL
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Posted: 11:53 on 02-22-2005
Preforclosures are extremely competitive and extremely risky. If you know what you are doing you can minimize some of the risk and sometimes you take calculated risk as part of the ability to profit. But as a one time investor/homeowner, you can not afford to take any risks with your 12k. Preforeclosures and auctions are also very competitive. If a first time investor was able to snag a deal, it would be either because of extreme good luck or because nobody else wanted the deal.
Brenda
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tomtomtom
13 Posts
Member Since: 02/21/2005
Maplewood, NJ
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Posted: 11:55 on 02-22-2005
Thanx for your honesty.
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RE_investor
35 Posts
Member Since: 07/05/2004
Belmont, CA
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Posted: 14:54 on 02-22-2005
I would agree with Brenda. I definitely would not recommend risking your money, on the pre-foreclosure, with the amount of knowledge you have at this point.
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tomtomtom
13 Posts
Member Since: 02/21/2005
Maplewood, NJ
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Posted: 16:34 on 02-22-2005
So do you think someone here could break down this auction listing for me ? Im trying to get an understanding of what exactly is going on.
Sheriff Sales
SHERIFF'S SALE SUPERIOR COURT OF NEW JERSEY CHANCERY DIVISION MERCER COUNTY Docket No. F-5097-02 COUNTRYWID HM LN Plaintiff Vs. JOHNSON, JACK, III, ET AL., Defendant Execution. By virtue of the above-stated writ of execution to me directed and delivered, I will expose for sale at public vendue, on WEDNESDAY THE 9TH DAY OF MARCH A.D. 2005 between the hours of twelve and five o'clock in the afternoon of said day, that is to say at two o'clock P.M., in the Court House, in the City of Trenton, in the County of Mercer and State of New Jersey. The property to be sold is located in the TWP of LAWRENCE, County of MERCER and State of New Jersey. Commonly known as: 183 FOCH AVE, LAWRENCE, NJ 08648. Tax Lot No. 8 in Block No. 2501 Dimension of Lot Approximately: 75 feet wide X 120 feet long Nearest Cross Street: Lannigan Drive Situated at a point on the northwesterly sideline of Foch Avenue, distance approximately 230.17 feet southwesterly from its intersection with the southwesterly sideline of Lannigan Drive. PRIOR LIENS/ENCUMBRANCES SEWER; OPEN + PENALTY; $804.36 SPECIAL ACCT#: bankruptcy; $1,855.58 AMOUNT DUE AS OF 01/21/05 The above advertisement does not constitute a full legal description of the Real Estate. The full legal description is available at the office of the Sheriff during regular business hours. (Full legal description consists ONLY of outside dimensions.) The approximate amount of the judgment sought to be satisfied by the sale is the sum of $182,386.38 plus interest and costs. At the time of the Sale, Twenty Per Cent of the amount bid will be required as a Deposit by the Purchaser, in Cash, Certified Check, Cashier's or Bank Check. The Balance is payable Ten Days from the date of sale, in Cash, Certified Check, Cashier's Check, or Treasurer's Check, with lawful interest calculated on the Balance Due, from the eleventh Day after sale, until Balance is paid. The Sheriff hereby reserves the right to adjourn the sale in this case without further notice by publication. FEIN, SUCH, KAHN & SHEPARD, Atty 973-538-9300 FILE #: CW612 SHERIFF'S #: 2005FCF00026 Kevin C. Larkin, Sheriff Fee $185.922/15,22;3/1,8 Times
1st question. in a listing like this are they required to tell you all of the fees and Leins?
2nd , in this example they say $182,386.38 is due at the end of auction
is that what the auction bidding will start at ?
3rd could you give a breif explaination of what risks this type of purchase might have.
thanx
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tzachari
129 Posts
Member Since: 08/25/2004
Jersey City, NJ
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Posted: 17:23 on 02-22-2005
The auction bidding will start at $100K, but the bank most likely will not give you the title until that 182K reserve price is met including all liens. When you attend the sherrif sale, you will be required to pay 20% of the bid amount (if you are the winning bidder) in money order and the balance in 30 days.
If you can't come up with the balance in 30 days, the attorney will keep your 20% money and use that to pay all fees and damages and loss of marketing time.
Basically, if you are planning to buy a property in a sherrif sale, make sure you can obtain the funds in 30days and you are prepared for all worst case scenario. I wouldn't do it if I was a beginner.
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reinatalie
318 Posts
Member Since: 05/23/2004
San Mateo, CA
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Posted: 18:07 on 02-22-2005
Quote:
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1st question. in a listing like this are they required to tell you all of the fees and Leins?
-> No, they are not required to tell you about all the Liens on the property. This, just talks about the foreclosing lien.
2nd , in this example they say $182,386.38 is due at the end of auction
is that what the auction bidding will start at ?
-> Yes, approximately. Could change right before auction.
3rd could you give a breif explaination of what risks this type of purchase might have.
thanx
-> That is where your learning comes one, each situation is different, and could have multiple risks.
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kimesha
188 Posts
Member Since: 01/25/2005
Philadelphia, PA
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Posted: 18:27 on 02-22-2005
hello,
i am a newby just like you and i have been doing some reaiding on forclosures. I would reccomend that u take the same route. I read Quick Cash in Forclosures & it is very informative for a beginner. forclosures can become very complicated so please be careful. P.S. you usually you dont get to see the internal of a house going for auction. you dont want your first primary home to have a super damage roof or any other major problems to drain your pockets
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tomtomtom
13 Posts
Member Since: 02/21/2005
Maplewood, NJ
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Posted: 19:06 on 02-23-2005
Thank you all for the great advice, Im gonna hold off for now until i learn alot more. I guess i was a little over enthused about the possibilities. Very glad i found this site though 
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JohnMichael
1444 Posts
Member Since: 11/20/2002
Springfield, MO
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Posted: 19:42 on 02-23-2005
You have received some wonderful advice on this issue! Therefore, I will just add my 2¢.
You should first place your 12k in a CD/401k/IRA or any other interest bearing type investment plan that will allow you to get a loan using the amount saved as security. Many will lend based upon the security instrument at 2% above what your interest rate would be.
You first of all need to learn all you can about foreclosure investing before you jump, deals come and go and their will be others. I love the excitement in your post.
You first of all need to research the property at your tax office and deeds office.
You will want to look to see what position the foreclosing party is in 1st, 2nd, or 3rd as this will be your first determining factor for risk.
You will want to inspect the property to determine if any potential repairs my out weigh the investment.
You also will need to determine what the current market value of the subject property is by evaluating several recently sold comparables in likeness and location of your subject investment.
_________________
"What is necessary to change a person is to change his awareness of himself." By Abraham Maslow
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tomtomtom
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Maplewood, NJ
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Posted: 19:46 on 02-23-2005
I currently have the money in my credit union and they give me %2.69. I have just picked up the paperwork to apply for a loan from them. Would it still be better to put the Money in a CD or 401k? and if so what type of CD and for how long?
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tomtomtom
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Posted: 21:05 on 02-23-2005
I currently have the money in my credit union and they give me %2.69. I have just picked up the paperwork to apply for a loan from them. Would it still be better to put the Money in a CD or 401k? and if so what type of CD and for how long?
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