| How to Use Your New York and New Jersey Foreclosure Lists |
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Where does our data come from?
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The key to finding great deals in your area, is to first find motivated sellers who are IN foreclosure (pre-foreclosure). In New York and New Jersey foreclosure begins when the lender files a lawsuit (Lis Pendens). Therefore you would want to track all newly recorded Lis Pendens filings and Sheriff Sales (Auctions) for your area(s) on a regular basis.
Foreclosures.com has the most timely, accurate, complete foreclosure data on the web, because we obtain our pre-foreclosure data directly from the best locally collected, foreclosure real estate research firms in both New York and New Jersey.
All Newly Recorded Pre-Foreclosure Data that appear on our reports are MANUALLY RESEARCHED by experienced Real Property Specialists. Foreclosures.com provides only top quality, accurate and timely lists NOT the electronically scanned, or incomplete and inaccurate data found at other sites on the web. EVERY recorded property in foreclosure appears on our newly recorded weekly lists.
We also cross-reference all manually collected Hall of Records information with Tax Assessors information, providing you with an accurate property address, property characteristics (where available) and the most current owner.
Lastly, our exclusive "HomeGain Valuation" provides current property market valuation on each property listing (where available). Plus each address is linked to "MapQuest", making a map to the property just a click away.
Simply put, we provide all the information you need to identify and pursue the best foreclosure leads for your below market purchase in New York and New Jersey.
Our Listing Subscribers receive their new money making opportunity lists once a week. Every list has all new listings with no repeats. Every Sheriff Sales (Auctions) list is an accumulation of all upcoming Auctions for the coming four (4) weeks. Each Subscriber uses our information differently:
There are over 1,000 NEW pre-foreclosure leads published each week in New York and New Jersey. For an idea of how many new foreclosures are published in YOUR county, visit our Ordering Page, go to page 2, and click on the link "Average Number of Properties" for a county by county average over the last 90 days.
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What types of foreclosures are included?
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| All Lis Pendens Filings in both New York and New Jersey:
Your Foreclosures.com Lis Pendens Report includes all newly recorded pre-foreclosure properties (within 5 days of the date of the court filing) where the lender has just filed a legal complaint ("Lis Pendens") due to non-payment of a mortgage. Plus, in the Five (5) Boroughs of NY, included in your Lis Pendens Reports, you will find all NYC Tax Liens (read below for more information).
You will deal directly with the motivated property owner before they lose their property (and equity, credit, etc.) at the foreclosure auction. (Click Here to read some recent articles on this subject.).
Each weeks report is sent to our Subscribing Members and includes all newly recorded Lis Pendens properties -- approximately 6-18 months before the Sheriff's Auction (see below).
Many of our Listing Subscribers have been able to negotiate their best purchase when working directly with the owners in foreclosure, and have found this to be the most profitable stage of foreclosure leverage investing.
NEW: All NYCTL Tax Lien Properties in the 5 New York City Boroughs
(Bronx, Brooklyn, Manhattan, Queens, Staten Island)
Your Foreclosures.com Lis Pendens Report includes all newly recorded NYCTL (New York City Tax Liens) properties, where the Creditor has just filed a legal complaint due to non-payment of property taxes.
You can quickly find all New NYCTL leads for your Five (5) New York City boroughs, by checking the bottom of your weekly Lis Pendens Report. NYCTL leads have a clear heading and the background color is different. To see a FREE Sample, Click Here
With NYCTL properties, you will deal directly with the motivated property owner before they lose their property (and equity, credit, etc.) at the tax sale.
To learn more about "New York City Tax Liens" click here.
Many of our Subscribing Members have been able to negotiate their best purchase when working directly with the owners in default, and have found this to be a very profitable way to buy property at a substantial discount to market value.
All Sheriff Sales (Auctions) in New York Only
(Not available in New Jersey at this time).
Your Foreclosures.com Lis Sheriff Sales (Auctions) Report is an ACCUMULATED list of all upcoming Auctions for the coming four (4) weeks.
Many months after the Lis Pendens filing (above) the Sheriff schedules a date of the auction. The borrower still owns the property and is the only one who can transfer ownership of the real estate (or get another mortgage), prior to the date of auction. This is still considered a pre-foreclosure purchase.
During this period of time the borrower can cure the violation of the agreement with the lender. Occasionally, the borrower will go into Bankruptcy. There are many ways this can be done. This action can hold up the Sheriff's sale of the property. Read more about this here.
Finally, if after all roads of curing have failed, the real estate goes up for auction at the weekly Sheriff's auction. In New York the successfully bidder is required to make a 10% down payment (cash or certified check only, made payable to the referee) and must close within 30 days. The highest bidder secures the property at the auction. The Sheriff issues a Sheriff's Deed to the one who bid the highest price at the auction.
Rather than just list all the newly recorded Auctions, Foreclosures.com provides our Listing Subscribers with a COMPLETE Auction Report the is compiled by us to help YOU. Here is how we do it:
- The week that just passed is dropped from our weekly Auction report,
- The upcoming three weeks are continued on our report (and will show as duplicates if you import into a database),
- We add one week (the fourth week) of newly listed auction properties to the report.
Hence our Subscribing Members will always have ALL the upcoming auctions for the coming four weeks.
Conceded as the "easiest way" to buy foreclosures if you have the cash, and don't want to talk to sellers — but not necessarily the best prices.
Plus, we recommend only expert investors and researchers with a lot of cash buy at the Sheriff Sale Auctions. Read more about this high-risk venture here.
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How often do you receive the listings?
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| All Internet Subscribing Members (web or email) have access to our new data after Noon Every Publication Monday. If you are setup for email delivery, there is nothing to do except check your email inbox every Monday afternoon, and then click on the attached file and get to work.
If you are not setup for automatic email, please click here to logon to your Foreclosure Listings account, and click on the Email Delivery Service link in the top-right of the List Selection page.
If you want to stay on web delivery, you will need to remember to visit /home/ every Monday afternoon to access your new data. Just in case you forgot, we do keep the current one (1) week plus three (2) prior weeks data up and available for web access every time you log in.
Once you access a Unit (a Unit is equal to one week's publication type for one area), we will deduct 1 Unit from your most current Unit Package Order. If by accident you select the exact Unit again (same week and same area) your Unit Package will NOT be deducted.
Unit Example:
New York - Four (4) weeks of Lis Pendens reports and Four (4) weeks of Auction reports for Queens is Eight (8) Units.
New Jersey - Four (4) weeks of Lis Pendens reports for Sussex/Warren/Morris counties (3 counties packaged into 1 Unit) is Four (4) Units. Four (4) weeks of Lis Pendens reports for the entire state of New Jersey (21 counties packaged into 8 Unit Areas) is Thirty-Two (32) Units.
When you are setup for Web delivery, you can use up your Units at your convenience, and have access to ALL New York and New Jersey areas and Notices (Lis Pendens available in all areas; Sheriff Sales available in New York areas Only).
Do make sure you DO NOT stop accessing your new Units for more than 6 months. If you do, we will automatically switch you to email delivery (off from web delivery) and send you your remaining Units (based on the area(s) you last accessed) until you have used up all your Units. Once you use up your Units, it will be time for you to renew. Renewals are NOT done automatically, but up to you to authorize a new purchase. We will send you reminder emails and phone calls as you get close to using up all your Units.
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Where should you begin?
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Your first step in effectively using your New York New Jersey Foreclosures Data listings should be to carefully study all accompanying literature. That includes your "How to Read Your Lists", "How to Use Your List" (this document), "Foreclosure Laws and Process for NY and NJ.
Also make sure you read all our "Past Issues" to the "Foreclosure Forecast ezine". There are a ton of helpful ideas waiting for you to use, totally FREE of charge, and easily indexed by "Author" so you can read all your favorite authors past columns.
For more information, our new training programs "The Six Steps to Mastering Foreclosures" 2004 edition and our "3 day Mastering Lab" WILL work in your area!
Please call Our Consultants at 800-310-7730 x2.
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How do you find the property location?
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In New Jersey, the property in foreclosure location is listed as the "Address", "City" and "County". The "Map It" button is on the right (just next to the Homegain Valuation link) so you can see exactly where the property is located! Make sure you our key guide on "How to Read Your List" document before you go any further!
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How can you tell if this is a "good deal"?
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We know the reason you are a Subscriber of our foreclosure lists, is so you "Don't Pay Retail" when you buy your next property. Therefore, you need an easy way to "find properties that have substantial EQUITY. The definition of Equity is the difference between "the amount owed on the property" versus "the current market value".
As a Foreclosures.com Subscriber you will see every mortgage that is in foreclosure (as they are recorded - and all the New York City (5 Boroughs) Tax Defaulted properties), with all the information we obtained from our public records research. We have found the best way to find "great deals" on your list is to first quickly determine the "current market value" of each house on the list.
As a FREE service to our Subscribing Members, we have provided a "Homegain Valuation" link on every property (where available). Click here for more information on Homegain.
When you click on the "Homegain Link" you will see what the approximate market value is for that property in foreclosure. If you then divide the top "Homegain Valuation" by the "Mortgage amount in Foreclosure" (as found on your list) you can quickly determine if the property has enough equity for you to pursue it as a purchase.
If there are many bidders present at the Sheriff Sale auction bidding on a property, it does not necessarily mean it is a good deal. Do not get caught up in the frenzy.
For investor purchases, we recommend you pay no more than 70% of the "after repaired" market value. For more help on how to do this, please read "Doing the Math Quickly and Easily" here.
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Who do you contact if you like a property?
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All Lis Pendens Filings in both New York and New Jersey:
You need to contact the owner in foreclosure (and the owners in the New York City (5 Boroughs) who are in default on their property taxes), who is found on the report listed as: Defendant. Do NOT call the Attorney for the Plaintiff - this is listed for informational purposes only. The Attorney will NOT help you buy this property!
Contact the Defendant as soon as you read your new list, and continue to contact them every 2-3 weeks up until the auction sale (or the property tax sale) -- for optimal response. The best way to contact the owner is first by phone, then by mail and finally door knocking. As we do not have owners phone numbers on our reports, it is up to you to locate them.
Please read this to learn more on how to find the owners phone number.
You can help the property owner save their credit and equity by offering to purchase their property, or by providing them additional money through a secured loan (mortgage). Discuss all their options. Ask lots of questions OVER THE PHONE (example: are any other mortgages and liens on the property? current physical condition of the property?) before you meet with them. If they are truly qualified sellers, then set up a meeting to go through the property and write your offer.
For more ideas how to contact the owners, read these helpful free articles:
"Why isn't my postcard working?"
"What to say and not to say"
"More on What to say and not to say"
"Meeting with the owner"
Please read carefully the Foreclosure Laws and Process for both New York and New Jersey, BEFORE you write any offers. Do Read this Legal Corner Article ASAP:
"Foreclosures in NY and NJ"
You should also seek the advise of a good local real estate attorney.
If the property owners are not interested in selling or obtaining financing today, they may be in a few weeks (about 80% of all foreclosure properties will be available for sale within one year from the original notice). Continue your contact three, four or more times over the next few months. The key is to be sensitive, honest, and repetitive. They will most likely be motivated to sell many weeks or even months after your contact was made. You MUST keep your name and phone number in front of the owner during this entire period.
This is the #1 reason many investors do not succeed in buying houses in foreclosure.
They simply do not follow up! Do not make this fatal mistake!
There are many more helpful suggestions written in our monthly Foreclosure Forecast e-zine, sorted by Author. Just click here and pick your favorite column/author and start reading up!
All Sheriff Sales (Auctions) in New York Only
(Not available in New Jersey at this time).
Once the judgment is passed down, a legal advertisement for the Sheriff Sale is printed for 4 consecutive weeks before the auction sale. Usually, the Sheriff Sale auction takes place two months after the judgment is entered. You may still buy the house from the current owner BEFORE the Auction.
Many subscribers have found this period as the best time to make your last offer to the homeowner in foreclosure. Don't be surprised, however, if this late in the game they seem unresponsive. Often times, folks simply walk from their house and their equity! So, take the time and try to find them before the auction.
If you have the cash, attend the Auction. You need to contact the attorney for the foreclosing bank the night before the auction to see if the sale is still on, and to see if there is an "upset price," the minimum price required by the bank.
Here is what normally occurs at Foreclosure Auction Sale:
The attorney for the bank and the referee are present. The referee reads aloud the terms of sale. In almost all instances the terms are for cash only within 30 days and 10% down on the spot from the successful bidder in cash or equivalent - no checks. Unlike a regular real estate transaction there is no "contingency" for mortgage financing. If the balance of the "cash" is not paid within 30 days the mortgagee can retain the downpayment. You can obtain financing to close but if you are unable to obtain the financing you do stand to lose your downpayment unless you close timely.
The referee will open the bidding at any price that is set by the foreclosing party. The opening price does not have to have any relation to the fair market value of the property. Generally, the foreclosing party is only interested in conducting a fair and proper sale and obtaining the amount owed pursuant to its judgment of foreclosure. Any monies obtained in excess of the amount owed will only be the subject of surplus money, with proceedings to determine the appropiate beneficiary.
Competitive bidding may force the price much higher then what is owed on the judgment.
At the closing the successful bidder will receive a referee's deed. Usually, the new owner will have bought the property free and clear of all liens except for real property taxes and emergency repair liens. The only outstanding issue will probably be the condition of the property inside and out and the eviction of any occupants.
We recommend only expert investors and researchers with a lot of cash buy at the Sheriff Sale Auctions. Read more about this high-risk venture here.
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How much money do you need to start?
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When buying from the owner in foreclosure (pre-foreclosure), you can be creative by attaining a deed from the seller "subject to the existing mortgage" and then "bring the arrears" on the mortgage current (pay up the back payments and fees on both the mortgages and property taxes). You can contact the underlying mortgage holder and see if the mortgage is assumable. If it is current, for a nominal fee, many banks will allow you to assume the mortgage.
Therefore, you will need enough money to bring his mortgages and property taxes current, plus additional funds for the owner to "give you their keys" (totally negotiable, based on YOUR skills and the owners motivation) and closing costs.
You can then borrow the money to do your repairs (at the time of this writing Home Depot was offering 6 months interest free, no payments, credit lines!). Of course you will need to keep the mortgages and property taxes current while you hold the property, so YOU don't lose the house to foreclosure!
I've seen pre-foreclosure deals done for less than $5,000 cash out of pocket. However, it's hard to say how much money your deal will take, as it varies greatly. You will want to prepare a budget, based on the above, and start watching for deals that fit your perimeters. For investors, there are more costs to consider, so Click Here and read this article for more budgeting help.
We recommend only expert investors and researchers with at least $50,000 in CASH buy at the Sheriff Sale Auctions. In New York the successfully bidder is required to make a 10% down payment (cash or certified check only, made payable to the referee) and must close within 30 days. The highest bidder secures the property at the auction. The Sheriff issues a Sheriff's Deed to the one who bid the highest price at the auction.
Remember, you will NOT be able to fully examine the property's physical condition, or obtain title insurance.
Make sure you read: "So you want to be a Pirate?"
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Why foreclosures.com?
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One of the many advantages our Listing Subscribers have received is our extensive distressed real estate background. We are foreclosure experts. We know what information you need, how you need it and when you need it. As a Listing Subscriber, you will receive superior service, and have email access to the owners of the company at no additional charge.
The research provided in our daily lists replicates hundreds of hours of weekly research. Money is made in the foreclosure markets by talking to property owners, not by doing research. Our Subscribers are able to spend their time making money, not researching public records.
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When should you start?
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In every case, today! Anything worth doing is worth doing now. Procrastination is the biggest stumbling block for goals being reached. Complete your order online or call (800) 310-7730 with your Visa, Master Card or American Express to start immediately. If you should have any questions not covered by this information, give us a call - or, send us E-mail.
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