Wheel Street Journal #1 - Foreclosures

Foreclosure, REO, short-sale, NOD, auction and Trustee Sale are all terms passed around at today's cocktail parties (at least at my cocktail parties). The foreclosure process is complicated, so we've distilled the basics to these 4 steps:

1. Notice of Default (NOD): The foreclosure process begins here as the owner defaults on their loan payments and the lender files a public default notice, called a Notice of Default or Lis Pendens.
2. Notice of Trustee Sale (NTS): If the loan is not reinstated by the end of this NOD period (usually 90 days), the lender records a Notice of Trustee Sale, signifying that the building will be sold at auction in 30 days.
3. Auction: If you haven't been, you need to check out an auction; wear a ball cap, shades and a shabby jacket to blend in with the typical cast of characters. Auctions are held at the steps of county courthouses, buyers show up with cash or cashier's checks and opening bids are set by the lender. If no one bids, the building goes 'back to the bank,' which happens about 90% of the time.
4. Bank-Owned (REO): The lender now owns the building and is on title through a Trustee's Deed; they are now in cooperation with a receiver, property manager and/or a broker.

However you slice it, there are many points of opportunity along the way; learn more by clicking on our video above!

Category:

News & Politics

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• multifamily
• real estate
• investment
• wheelhouse
• brokerage
• whvideo3