Foreclosure Tips

Foreclose Your Own Mortgages

by david on June 17, 2012

 NOW YOU CAN FORECLOSE YOUR OWN MORTGAGES

Help is available to private lenders including individuals, groups of private lenders that owner finance or seller finance real estate properties, hard money lenders, developers, real estate professionals and more who participate in lending money on real estate secured investments.

Whether you use a Document Preparation Service or file a foreclosure action on your own as the plaintiff;  the process can be intimidating to say the least.  The legal system and courts are set up to field out potential headaches who use the system, but really have no understanding about how the system works.  You can’t really blame the people who are responsible for this, just think; it could  waste a lot of the courts time should they have to educate everyone who wants to represent themselves. 

I discovered sometime ago as a private investor that I had to invest in mortgages and Agreements for Deed to either sell out a real estate development I had developed,  fund a fixer upper, rehab or fund other properties that may not have sold without some sort of seller held financing or creative financing.  Ever faced that situation before?

Representing yourself is not as difficult anymore.  In fact; the experience can be quite rewarding.  Just knowing you now have the resources to foreclose privately held mortgages yourself as the plaintiff should be a great blessing.  You own the loan.  You learned how to finance buyers and created a great investment in mortgages or Agreements for Deed, so why not foreclose your own Mortgages?  We decided that hiring a lawyer to foreclose on some of our delinquent mortgages or Agreements for Deed would cost more than the property may be worth.  Completing the process could certainly take longer as well.

I called Document Preparation Services; no luck.  Legalzoom; no luck.  I even attempted to hire a lawyer to teach me how to foreclose our Agreements for Deed.  He laughed and said it defeats the purpose and he would rather make more money.  So I went to the law libraries and Clerk of the Courts and leaned the foreclosure process on my own.  The rest is history.  All circuit judges assigned to our Pro Se foreclosure cases signed the final judgments without a single question.  Consider hiring a  Document Preparation Service.  They should have this resource available to you and can prepare all necessary documents according to your specific instructions.  This will be a big help, if you don’t like paper work or are too busy to worry about that part of it.  Buy the “Foreclose Your Own Florida Real Estate Loans” package.  This will give you all the tools you need and an inside look at the Florida Foreclosure Process.  Check with your local Document Preparation Service for this valuable resource and doc prep.

David M. Bass

DAVID M. BASS IS NOT A LAWYER AND THIS IS NOT LEGAL ADVICE.    

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Rig The Bid

by brian on April 1, 2012

Many counties in Florida have their foreclosure auction online.  This saves time, makes for easier filing and streamlines the process.  Last year I had the opportunity to use the auction method and found the process very user-friendly.

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We had a couple of foreclosure cases that were one day apart.  So about a week before the auctions, I set up an account with the auction company that services Polk County – where the foreclosure sale was being held.  The reason I did it was because I realized that if we would take a lower price for the property than the amount of the final judgment, we could place a maximum plaintiff’s bid to create a ceiling on the bidding where we would be out and the property would be sold to a different buyer.

HOW IT WORKS

Our final judgment was in the amount of $18,000 and some change.  With the real estate market down and the impact fees the county was charging to improve vacant land, the real value of the property was around $8,000 to $9,000.   So I placed a maximum plaintiff’s bid at $8,950.  The bid was still too high; however, it was a great option for us.   We ended up being the high bidder and got the property back.

THE RESALE

Because we had developed the property in the early nineties and had sold it with owner financing three other times, our basis was very low. I put the property back on the market at $5,990 with a low down payment and owner financing.  I resold it in less than 30 days.  Now it back in the black and is good loan for us.  The fourth time is always a charm.

THE AUCTION COMPANY

The auction company for Polk County is:

http://www.realauction.com/

877-361-7325 extension 505

If you’d like to set up an account as the plaintiff or as a buyer online, you can do both.

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