WLCCI

Purchasing A Property In The Initial Stage Of Foreclosure

To purchase property during the initial stage before foreclosure proceedings, you need the unqualified permission from the bank and the owner of the property. If either refuses, buying the property and bringing the mortgage current will be impossible.

Assuming the seller is willing to allow you to bring the mortgage current and buy the property under terms that are favorable to you, you should then visit the bank and determine whether you will be permitted to assume the mortgage if you bring the payments current. If the mortgage has a due-on-ale acceleration clause, but you are given permission to assume it, find out what the new interest rate will be. Be sure to get the answers in writing from an officer who is able to bind the bank corporation.

Assuming that you have assured yourself of the satisfactory physical condition of the property, now get a preliminary title report from a tittle insurance company. For a cost of approximately $50 to $100, the title company will give you a report on the title and will determine if there are other liens against the property, such as a judgement lien from a local finance company.

When you are satisfied about all aspects of the transaction, have the title insurance company prepare a deed which will be signed by all owners of the property. Their signatures should be witnessed and notarized by a notary public. You should quickly record the deed in the public records. Then be sure and obtain fire and casualty insurance for the property.