Ohio Foreclosures for Sale

Posted in Foreclosures For Sale, September 8th, 2008 |

Court foreclosures are rare and most foreclosure take place out of court. This also depends on whether the there are problems with the title or if the mortgage does not have a provision allowing the lender the rights to sell a property on default. The foreclosure process starts when a lender gives attorney’s the necessary documents to foreclose on the mortgage. The attorney will then schedule the date for the sale of the property.

It is not really required by law, however certain mortgages require that 10 – 30 days before the sale, the lender sends a notice of default to the home owner, notifying them of the foreclosure process. Unless otherwise state by the mortgage documents, the borrower in default has the right to pay off the debt to the lender and cease the process, up until the date of the sale.

For the investor who is considering buying a pre-foreclosed property, there is a great deal of preparation and hard work required. The investor is required to work with the homeowner and even sometimes the lender to achieve this process. This is not easily achieved, particularly trying to meet with the homeowner. The goal essentially is to create a situation where everyone wins. The homeowner wins because they are freed of their default debt and will not have to undergo the foreclosure process, and the investor wins as he is then able to purchase the property at a really good discount.

The first thing to do is locate loans in default. This is achieved by means of the “Lis Pendens”, the first public notice that a loan is in default. Access to the Lis Pendens notices is found through the county courthouse and newspapers who routinely announce them. A reputable Ohio foreclosures for sale provider will also be in a position to provide a list of loans in default.

The default amount will be available on the legal notice and the market value of the properties the investor identifies will need to be estimated. Subtract one from the other to determine the gross equity of the property to evaluate the potential for profit. If there is very little difference in the debt and the market value of the property, this is not a viable property and another should be sought. If there is a large variance, there could be enough equity available in the property for the investor to make a tidy profit.

Contacting the homeowner is easier said than done, they are up to their eyebrows in letters and calls from creditors, attorneys and bill collectors and are feeling cornered. The only way to contact them is by phone or through the mail, chances are that neither of these routes are going to be easily accomplished.

It is best to start by writing a letter, tell the homeowner in the letter that you are a private investor who is interested in purchasing his property, and make him aware that you are able to help with his dilemma.