Any real estate experts on here? Complicated issue.

[Neesy228]

We have been watching an abandoned/vacant/foreclosure house for almost a year and a half, waiting for it to come on the market. It hasn't, so I started digging around trying to figure out what was going on with this place. It's starting to fall into dis-repair, which is a shame, because it's a beautiful house in a good neighborhood.

We knew that it went to Sheriff's sale last fall and was bought by the bank. BUT when I went digging - it seems that the bank declined to take possession of the property, so the title is still in the original owners name. Those people have since moved out of the country (back to Korea) and they probably don't even know they own this house anymore!

In my research, this seems to be a relatively "common" event stemming from the housing/foreclosure crisis. They call it a zombie title. Great, eh?

So, my question to anyone who might have a clue about complicated real estate -- is it even possible to purchase this property?! It seems like it's not. The bank doesn't own it. The owners are long gone. Will it sit and fall apart?

I'm considering doing a title search, because I'm curious if the bank that backed out of the sheriff sale wrote off the mortgage as bad debt or if it's still got a lien on the property...

Any ideas? I would appreciate any further insight anyone might have. It's become quite the puzzle! Thanks in advance!

 

[Sheaboys]

You can check for liens on a property on your Registry of Deeds Website or go to the Registry. You just need the address of the property or the name of the owners.

 

[Judique]

We have been watching an abandoned/vacant/foreclosure house for almost a year and a half, waiting for it to come on the market. It hasn't, so I started digging around trying to figure out what was going on with this place. It's starting to fall into dis-repair, which is a shame, because it's a beautiful house in a good neighborhood.

We knew that it went to Sheriff's sale last fall and was bought by the bank. BUT when I went digging - it seems that the bank declined to take possession of the property, so the title is still in the original owners name. Those people have since moved out of the country (back to Korea) and they probably don't even know they own this house anymore!

In my research, this seems to be a relatively "common" event stemming from the housing/foreclosure crisis. They call it a zombie title. Great, eh?

So, my question to anyone who might have a clue about complicated real estate -- is it even possible to purchase this property?! It seems like it's not. The bank doesn't own it. The owners are long gone. Will it sit and fall apart?

I'm considering doing a title search, because I'm curious if the bank that backed out of the sheriff sale wrote off the mortgage as bad debt or if it's still got a lien on the property...

Any ideas? I would appreciate any further insight anyone might have. It's become quite the puzzle! Thanks in advance!

The buyers at a sheriff's sale sometimes have to wait a year to take possession. The original owners can
pay the taxes and delinquent mortgage plus a % during this time and reclaim the property.

The redemption period varies to as little as 10 days depending on where the property is located.

 

[Neesy228]

The buyers at a sheriff's sale sometimes have to wait a year to take possession. The original owners can
pay the taxes and delinquent mortgage plus a % during this time and reclaim the property.

The redemption period varies to as little as 10 days depending on where the property is located.

It's been well over a year, but I think possession is within 14 days here. Thank you for your idea though!

 

[leight]

Every state is different. But I'll give my 2 cents from my experience.

If the bank(mortgaging company) put the house up for auction and didn't get the offer they wanted they will 'buy it back'. It is a foreclosure so often it will still show the deed in the last owner's name but be legally the bank's property.

Now, some banks act quick, many don't. Have you checked that bank's website for REO's? (bank owned real estate) Some have homes available listed on their website.

I am assuming you are looking to buy this home- so you may want to contact a real estate agent who specializes in foreclosures to check the foreclosure listings. Many times banks take years to contract a broker to market the home but there is a list of foreclosures where you can put an offer direct to the bank and it is not available to the public in all places- and it doesn't show on MLS until a broker is engaged by the bank and lists it.

We were involved in a short sale in 2008 when the one part of the bank accepted our short sale offer and the other part of the bank simultaneously foreclosed and put it up for auction. Luckily I was able to negotiate a rescinding action of the foreclosure and once it was court approved we proceeded with the short sale purchase with the bank & owners.

OP- good luck!

 

[Neesy228]

Every state is different. But I'll give my 2 cents from my experience.

If the bank(mortgaging company) put the house up for auction and didn't get the offer they wanted they will 'buy it back'. It is a foreclosure so often it will still show the deed in the last owner's name but be legally the bank's property.

Now, some banks act quick, many don't. Have you checked that bank's website for REO's? (bank owned real estate) Some have homes available listed on their website.

I am assuming you are looking to buy this home- so you may want to contact a real estate agent who specializes in foreclosures to check the foreclosure listings. Many times banks take years to contract a broker to market the home but there is a list of foreclosures where you can put an offer direct to the bank and it is not available to the public in all places- and it doesn't show on MLS until a broker is engaged by the bank and lists it.

We were involved in a short sale in 2008 when the one part of the bank accepted our short sale offer and the other part of the bank simultaneously foreclosed and put it up for auction. Luckily I was able to negotiate a rescinding action of the foreclosure and once it was court approved we proceeded with the short sale purchase with the bank & owners.

OP- good luck!

It went on the banks REO site, then disappeared very quickly. The bank told me that "there was a problem with the sale and it reverted back to the original owners"...it's all so weird! This house sits, falling apart, and no one seems to have the ability to sell it.

Thank you for your thoughts though! I appreciate it!

 

[Friendly Frog]

Hmmm, check with the county and see who, if anyone is paying the taxes?