When a borrower defaults on a mortgage or deed of trust, the lender (usually via a Trustee or Substitute Trustee) begins foreclosure proceedings. If the borrower fails to cure the default, the court will typically appoint a trustee to sell the property at auction, in order to satisfy the debt. This sale is often advertised as a “Trustee’s or Substitute Trustee’s Sale,” “Mortgagee’s Sale,” “Assignee’s Sale,” or a “Foreclosure Sale”.
Before the auction may occur, the trustee must publish notice of the sale in a newspaper of general circulation within the county in which the property is located. Therefore, investors seeking to bid on properties at foreclosure auctions should routinely peruse the legal notices of their local newspaper for upcoming sales. This notice will provide a description of the property, the time and place of the sale, as well as the terms and conditions of the sale. These foreclosure auctions provide a great way for investors to purchase properties at below-market rates, provided the investor is well-prepared.
How to maximize your success in a foreclosure auction
In order to maximize their success, an investor should take a number of steps before participating in a foreclosure auction. First, an investor should study foreclosure auctions in the area, in order to gauge current market conditions. There are a number of online resources available to help investors track local foreclosures. Once an investor has found an auction to participate in, they need to prepare their financing. Many lenders are unwilling to accept a deal contingent upon a bidder obtaining a loan. Therefore, in nearly every auction, a bidder must be prepared to pay cash for a property immediately following the auction. Once financing is in order, the investor should complete their due diligence of the property, including a drive-by of the property, if possible. The investor should identify any and all liens on the property, including additional mortgages. This step is crucial, as the investor may be required to pay off these liens at closing. For this reason, the investor may wish to seek the assistance of a real estate attorney to ensure that all liens have been identified.
Once the auction is completed and the sale is ratified by the court, the investor can work to obtain title insurance, record the deed, and begin rehabbing or reselling the property.
Contact our office to learn about buying Maryland tax liens
The Law Office of Ross W. Albers would like to introduce our newest team member, Ryan D. Lewis, of O’Connell, Doyle & Lewis, LLC. With this addition we now offer new options for real property tax liens, foreclosures, landlord/tenant disputes, and multiple other real estate law issues. Ryan D. Lewis brings a vast array of real estate law knowledge which allows him to identify and quickly adapt to your legal issue. Which, minimizes your risk and when combined with his ability to leverage your asset protection, can increase your wealth through your investment.
Mr. Lewis, as well as the rest of our team, is committed to guiding you through the entire process of a tax lien purchase. We want to see your investment grow and benefit you as well as help you with any legal issue that arises throughout the process. Give the Law Office of Ross W. Albers a call today and start working with the leading Maryland tax lien attorney.