Why/how would a property with no junior liens and lots of equity go to sale?


#1

I have identified two properties going to foreclosure. Neither (appears) to have any junior liens, and both have 2-3 times more equity than principle owed (even at a comparable short sale price). Both sales have been postponed at least once and will probably be again. Am I naive to think these properties, or similair ones, will actually ever make it to sale? Why/how whould an owner just not sell, considering they are not underwater?

Would all loans/lines of credit secured by property be recorded along with the land records/deeds?


#2

Life goes on. People die, divorce, move, loose jobs, etc and cannot pay their mortgage. Some of these do go to sale. Low debt foreclosures are tacked by many bidders, so if what you say is true, you can expect competition if it does go to sale.


#3

Assuming no estate/death/divorce issues/or inablity to pay…Would all loans/lines of credit (that may potentially put the owner underwater) secured by the property, or lis pendens’, show up during a search at the recorder of deeds? I’m thinking the answer would be yes.
I’ve done a judgement search and only turned up the foreclosure proceedings.


#4

You would have to search for more than deeds. Most of what you need to know is at the recorder’s office. But you also need to check on property taxes. I have not discovered a way to eliminate all the risks of buying a foreclosure at the auction. Due diligence will reduce the risks. Be careful and get some help. Search this forum, you can learn a great deal of information from the experience and wisdom found here.