Harlem Homes Foreclosure Department

Specializes in the following:

• Assistance to the Purchaser in Pre & Auction sales
• Lis Pen dens Research
• Title Search
• Total
• Identify Foreclosed Property

Research Service Fee: $2,500.00 plus Title Search fee ($295.00) to be prepaid by Purchaser/Investor.

Royce T. Brown and Letti O’Loughlin of Harlem Homes will act as Buyer Brokers on behalf of the Purchaser. Our fee for the successful closing is a (3%) three percent of the purchase price minus the pre-paid $2,500.00 research fee.

For more detailed information, or to simply get started, contact Royce or Letti today at 212-961-1313, ext: 15
e-mail, Royce@harlemhomes.com, Letti@harlemhomes.com.

THE VARIOUS STEPS

• Initial in person consultation at Harlem Homes Office.
• Fill out a questionnaire asking
• Type of property you are looking for
• Which Borough do you prefer?
• Purchase objectives; long term or short term
• Price range
• Pre-qualified with what Bank
• Harlem Homes Foreclosure Dept. will present the current listings of property that corresponds to your answers on the questionnaire.
• You the purchaser will choose what property for research.
• Harlem Homes Foreclosure Department will research that property and present to you a complete 30-plus page Portfolio Performa.
• A second in person consultation to discuss the property to decide the strategy as it pertains to the offer to the homeowner or the bidding at the auction. (Please read the page what happens at the auction?)

WHAT YOU WILL RECEIVE

1. A copy of the foreclosure notice of default
2. Title commitment and a 24-month history in the chain of title or the last two recorded documents;
3. Banks upset price ( actual charges the Bank expects to receive)
4. A copy of the Deed with the current Homeowners name
5. The last recorded first mortgage, so you know how much the current homeowners owe
6. Copies or documentation of all liens against the property, including property tax liens;
7. Map showing the location of the property;
8. Your exterior home inspection, plus neighborhood photos;
9. City worksheet on the property showing all repairs, inspections reports.
10. A thirty- plus page Portfolio Performa of the Property
11. Guaranteed satisfaction.

WHAT HAPPENS AT THE AUCTION?

The referee will show up at the designated place for the auction. He or she will announce out loud that the auction for such and such property is about to begin. He then reads the terms of the auction. The terms basically say that the winner will have to pay 10% of the purchase price in cash or cashier’s check immediately after winning the auction and the balance within 30 days. The terms of physical condition and superior liens. That is, when you buy the property you inherit any tax liens and the like.

Next the referee may circulate a sign-up sheet on which potential bidders may be asked to sign in. Sometimes this happens, sometimes it doesn’t. The referee may ask to inspect the down payments of the potential bidders. The referee will usually state a minimum bid increment, which is usually less than 1% of the outstanding lien. The referee will also state the “upset price”. This is the amount of the outstanding lien, which is the total of the principal, interest, fees, and penalties owed.

These formalities out of the way, the auction starts. Different referees have different styles. Some take charge and call out the auction, do I hear 100? Do I hear 101? Others allow the bidders to callout their numbers and point at the bidders to recognize that the bid has been heard.
In most cases, due to the standardized way in which mortgages are sold into the secondary markets, banks will bid up to the amount outstanding lien. This is called the “upset price”
One Bank representative I spoke to told me that his instructions were standard: start with an opening bid of $ 1,000.00 and then immediately bid the full upset price if anyone bids over $1,000.00 of course, the bank never bids over the upset price.

Also remember that the best investment is sometimes not to invest, some properties bid over their real value.

Once the right price is finally found and the auctioneer has called out the traditional” going once! Going twice! Going three times! Gone!” the auctioneer will step aside with the winner to follow through with payment and signature of auction documents.