Edward Thornburg's Q&A

The new government guideline allows tenants in foreclosured properties 90 days to move after you buy a foreclosed property as long as they pay rent.  I don't believe this applies to current owners living in property.  Should the Federal  Government be involved at all in State Landlord/Tenant Law?  This may make a tenant feel good but what about the homeowner who only has 10 days to move from sale date.  This is in Florida and Florida Law from what I understand.  Now it seems to me that a federal law would carry with it a new requirement for foreclosing attorneys to give a notice to this affect in the Foreclosure Judgement.  If so, what canned statement should we be looking for in a final judgment when we buy a foreclosue at the courthouse steps.  Does the tenant have to pay the new owner within days,. weeks or what and what if the tenant just paid the old owner rent - Do they have to pay the new owner rent within the 10 days move out period under Florida Law.  Hope some attorney can answer this since we're in the Forelcosure business.

It's always posted in the County Website under your county property appraiser.  If they don't have a website then you may have to go to the county property appraiser's office to look up the information.  The big question is who cares who the owner is when you are buying a property as long as you get title insurance?  If it has clouds on title it will be found by the title company.  Never buy a property without title insurance even from a relative to be on the safe side.  There are too many possibilies that a lien exists from IRS, 2nd Mortgage, Vendors, Probate, Domestic case with child support, mechanics liens etc tht are unpaid.Ed T.

When you are buying a property, have your agent look at the comparables by square foot in that subdivision for comparable sales, with little emphasis on listings or pending.  What ever your square foot price is, based upon condition and square foot price, is the price you should expect to pay for house using only the last 90 days of comparables.  If you don't want to pay today's price after these comparables are provided to you then you aren't ready to purchasd a home.  This is not rocket science but simple math.  It still costs about $85.00 a square foot to build a house plus the costs of lot which is determined by neighborhood.   The cost of materials is not going down anytime soon, if at all.  The true value is in replacement costs and the market value today has no resemblance to replacement costs.  It is simply a liquidation costs based upon market conditions or what someone is willing to pay. When the inventory of homes stabilizes, the market prices will prevail again and you will have a nice equity position in the house.  There has never been a time in history, that I know of, that the homebuyer could could get so much house for such little cost, thanks primarily to the greed in the market place whether it be mortgage market, hedge funds and lack of oversight by our politicians.  The foreclosure market prices rise and fall with the inventory of foreclosures in the market place at any given time and it won't last forever.  When the foreclosure inventory decreases the prices will again got back to replacement costs over a reasonable period.  After 30 years of experience in foreclosures, I've never seen a better time to buy homes.  This is a once in a lifetime opportunity that probably won't be repeated.In summary, don't wait on the market conditions to change before you buy.  The mortgage company, in a short sale, will sell the property based upon the BPO (Broker Price Opinion) which is usually the listed price but not always.   Pay what you feel comfortable with but only after your agent does the necessary evaluation to show the true value of home in the subdivision the house is located in and not other areas.  Location-Location-Location is still the number one factor in determining the value of a home.  That's what buyer's agents are supposed to do for you but it's still you decision.Good Luck,Ed T.

Don't run, just be patient if you really want this house.  If you really want to buy the house that is now bank owned simply put a contingency in contract that home must be vacated and inspected by buyer prior to closing. Make sure you include all appliance, light fixtures etc in the contract.  If you find he tenant has stolen all the appliances and light fixtures, then the bank must replace them at their expense.  Just a note of caution, most tenants or owners steal or sell the appliances and light fixtures when homes are sold at the foreclosure sale.I believe the 90 day rule referred by Linda refers to Bank Bought property at Foreclosure sales.  I don't believe a foreclosue bought by a 3rd party falls under the same 90 day rule, except when reselling under FHA guidelines.  3rd party purchases at foreclosures are really where the bargains are but you have to pay cash at time of sale.  If you require a loan then you will have to buy it after the sale from a 3rd party purchaser.  If they are tenant occupied , bank owned or 3rd party owned, you still put a contingency in the contract that property must be vacant prior to closing.If you remember, a few years ago, FHA put a 91 day rule in place for loans on 3rd party purchases at the courthouse and then excludes Banks etc to sell their houses immediately without a 91 holding period.  This effectively removed FHA financing from 3rd party buyers giving the mortgage companies an unfair advantage of being able to sell their homes FHA quick while restricting 3rd party purchasers from selling theirs for 91 days  under existing rules.  Our great leaders must have got enough pressure from consumer groups to finally realized that if 3rd party purchasers must wait 91 days to sell their house so why not let the tenants live free or pay reduced rent for 90 days when mortgage companies buy their own homes back at the foreclosure sales.  Perhaps this is part of the Stimulus Package where the government is taking from one entity and giving to another.  Sounds like the beginning of another giveway and what happens to the rent payments - Do the tenants still have to pay rent?  If not, then it's another give away and if so, we are still a capitalist society.  In summary, there is still a simple solution just make sure you put contingencies , with a 90+ day closing, unless tenant moves out early,  in place when you make offers on bank owned foreclosures that protect you by either using a reputable Real Estate Agent or Attorney.Good Luck,Ed T.

We recently bought a tax deed property and the owner has died prior to possession.  There is a will,  but, according to the heirs,   but the attorney who has the will doesn't want to file the probate since not one of the heirs  has the money or will pay him for the filing and attorney fees.  Since there is a will , who can file a probate action in this case, except the heirs?   There is a large sum of money in escrow as excess funds in the court's possession right now and there is a lot of personal possessions remaining in the property.   There are past due taxes owed for past year.  Does the new owner have the right to file a probate or make a claim on the excess funds and/or personal possession to pay past due taxes?This seems to be a precedent setting example since I can't find a precedent in all my research?   I would like to hear a layman's opinion and/or even perhaps a case in law that would address this issue.

Generally Title Companies reure a suit to quiet title beefore they will insure properties in Florida.  If the title company finds no lien holders against a tax deed sale,  why do they require a suit to quiet title before they will insure the property when ther is no redemption period in Florida?  Do you suppose it's only because they can't guarantee they own title work or do you suppose it just creates more money for attorneys, since they own most title companies?

Should the IRS have the right to take property when there is not criminal activity involved or should it be automatically released when property is sold at a tax deed sale by municipalities?   Currently they have 120 days to redeem the property although they were notified like all lien holder/vendors before the sale.  Everyone else has no redemption period in Florida.

This is a question for realtors and Investors.  Foreclosure resales have become a large part of the real estate market today, especially in Florida.  We have a bit of competition at the courthouse but when we resale the home realtors don't seem to understand that the bid price is not always the real price we pay.So, it would be interesting to see how many realtors can answer this question correctly.Do the mortgage companies have to pay Docs stamps and registry fees on a house that they buy back at a foreclosure sale when no one else bids on property? Do existing IRS liens and Homeowner Liens have to be paid at time or sale, later or when resold, if at all? Is there a difference in Homeowners Liens being paid by investors and mortgage companies when properties are bought by either party or is the liability the same for both?What is a court registry fee?Do Doc Stamps have to be paid at time of purchase at the courthouses?Can you preview a foreclosure before the courthouse sale or is it simply a gamble by investors?

I would like to take a survey on how many realtors thing that part time realtor should be allowed to work in real estate and why?Please indicate if you are now working part time or full time in Real Estate when you give your reply?