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Dimitry Esquire
Dimitry Esquire, Attorney
Category: Real Estate Law
Satisfied Customers: 41221
Experience:  JA Mentor, multiple jurisdictions, specialize in business/contract disputes, estate creation & admin
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What is the Final Judgment Amount in a foreclosure What

Resolved Question:

What is the "Final Judgment Amount" in a foreclosure?
What does the "plaintiff max bid" means?
The "Assessed Value" of the foreclosed property refers to before or after the foreclosure? and who is responsible for coming up with this value assessment?
If I win a bid on a foreclosure auction, do I have to pay any/all other liens the property may have or is it clean and clear to take for the winning bid amount?
Submitted: 6 years ago.
Category: Real Estate Law
Expert:  Dimitry Esquire replied 6 years ago.
Thank you for your post--I will take your questions one at a time so I do not miss any:


What is the "Final Judgment Amount" in a foreclosure?
This is the amount owed to the lender by the borrower at end of judgment. By this point it includes the principal, auction fees, attorney fees, penalties, additional interest, and all fees incurred by the lender due to the foreclosure and auction minus the actual auction price that the property was sold for.

What does the "plaintiff max bid" means?
This is typically the bank's highest value for the property if they are also bidding on it during auction. As they are the ones that brought the action against the borrower, they are the "plaintiff".

The "Assessed Value" of the foreclosed property refers to before or after the foreclosure?
That is typically before foreclosure as that is the value on the property for the purpose of tax assessment.

and who is responsible for coming up with this value assessment?
Typically a tax assessor is responsible.

If I win a bid on a foreclosure auction, do I have to pay any/all other liens the property may have or is it clean and clear to take for the winning bid amount?
Yes you do. When you purchase a property from auction, you purchase it with all liens, interests, debt, and liabilities which you have to pay off before you are able to get clear title to the property.

Good luck!

Edited by Dimitry Alexander Kaplun on 1/21/2010 at 5:29 AM EST
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Customer: replied 6 years ago.

What is the best reliable source to find out about the liens and liabilities on the title of a foreclosure property in auction before I bid on it?

 

When a property in auction has multiple "defendants" (borrowers, construction co, associations) shouldn't all but the borrowers be "defendants" and all others -who I assume also want to collect from the borrower- "plaintiffs", together with the lender?

 

What do you consider the most valuable advise for someone who has never bid on a foreclosure property auction before?

Expert:  Dimitry Esquire replied 6 years ago.
Thank you for your follow-up.

To find about liens, you have to go to the county recorder's office and do a title and lien search on the property.

A "defendant" is anyone who is losing a possible interest in the property--since the construction company may be losing their investment, they are also deemed a "defendant".

Hmm....do your homework before you bid. Research the property, and find out exactly why the auction price is what it is--typically the reason it is low is because that difference is made up of liens and outside interests on the property which, when added in, make the value of the auction be much less than expected.

Hope that helps and good luck to you with your bidding!

Edited by Dimitry Alexander Kaplun on 1/21/2010 at 7:11 AM EST