Frequently Asked Questions
Q. What is a Foreclosure?
A. The forced sale of a piece of property to repay a debt. One kind of Foreclosure is a Trustee Sale, these are the most common type and the focus of Fairplay Foreclosures.
Q. What is a Trustees Sale?
A. A non-judicial foreclosure action whereby a trustee may auction and sell property secured by a Deed of Trust subsequent to a default in the terms and conditions of the loan.
Q. Will I be able to inspect the property before the sale?
A. Generally the answer is NO. A drive by of the property and visually inspecting the property from the public street is typically the extent of the inspection. This is one of the reasons buying a foreclosure is not for everyone. There is some risk, and condition of the property has to be taken into account when bidding. Occasionally we find that a property is listed for sale, in this case we may be able to enter the property.
Q. Can I write a check at the auction for my bid amount?
A. No, you will need to have cash or a cashier’s check in the full bid amount present when you bid at the Auction. You will then have to surrender that amount immediately after winning at the auction. If you are using financing, our cash lenders will be there at the auction with cashier’s checks to cover the portion you are borrowing.
Q. If I don’t like the property after I get inside, can I get my money back?
A. No. All sales are final. Another reason to have good research!
Q. Will banks lend me the money to purchase at the Auction?
A. Most often the answer is no. Banks and lending institutions want to be able to inspect the property they are lending on. This is not possible with a foreclosure auction and therefore unless you have lots of secured equity and a proven real estate track record you will most likely not be able to finance this kind of purchase from the normal lending institutions.
- Fairplay Foreclosures' parent company offers our investors cash financing to purchase at auction.
Q. What kind of Lender can I work with then?
A. Our parent company, Fairplay Funding offers our investor members financing in order to help them achieve financial success with foreclosure purchasing.
Q. There are lots of terms and vocabulary on the website that I am not familiar with. How do I figure them out?
A. Fairplay Foreclosures offers regular meetings for its members where we will have question and answer sessions, as well share in our experiences and techniques to help you navigate the foreclosure purchasing process.
Q. How much does it cost to join and become a member? Is there a monthly fee to view the website?
A. The answer is that there is no cost to join, and no monthly fee. You will only be charged a fee when you actually purchase a property at auction. If you don’t purchase you don’t pay.
Q. What is the fee amount?
A. Only three percent of the acquisition amount.
Q. When is the fee Due?
A. The day of the auction. If you obtain financing through our preferred lender it may be possible that the fee can be financed with the rest of the purchase.
Q. How do I Join?
A. Go to the Member sign up and print the application, sign and date and send it in. You will have full member access after your membership is approved.
Q. The Auction is bit intimidating and chaotic. Can someone help me there?
A. Our Sales Representatives will be at most of the Auctions and will gladly help you with your questions. We at Fairplay Foreclosures look forward to helping you reach your investment goals from A-Z.
Foreclosure 101
Foreclosure is a legal proceeding in which a
mortgagee, or other
lien holder, obtains a
court ordered termination of a
mortgagor's
equitable right of
redemption. Usually a lender obtains
a security interest from a
borrower who mortgages or pledges an asset like a house to secure the loan. A
borrower may have the equitable right of redemption if the borrower repays the debt.
While this equitable right exists, the lender cannot be sure that it can
successfully repossess the property, thus the lender seeks to foreclose the
equitable right of redemption. Other lien holders can also foreclose the owner's
right of redemption for other debts, such as for overdue taxes, unpaid contractors'
bills or overdue homeowners' association dues or assessments.
The foreclosure process, as applied to residential mortgages, begins when a
financially distressed homeowner fails to make a loan payment and the loan goes into
default. If the default isn't cured, papers will be filed with the
county and be made a matter of public
record. This notice is considered constructive notice and timelines will be based
on the date filed. On completion of the publication process, the foreclosure
action will proceed and the owners have a limited amount of time to bring their loan
current, sell their property, or make other deals with the foreclosure lien holder
or another willing creditor. The home owner’s timeline varies case by case, but
they have a minimum of ninety days once the process starts and the Trustee must complete the sale within six months.
After six monthsthe lender must restart the foreclosure process. If the home owner does not take
the required steps to cure the default, a foreclosure sale date will be scheduled
for a minimum of ninety days out. On the day of the foreclosure sale, a trustee appointed
by the Lender will hold an auction in a public place. The lender will set a
minimum bid not to exceed the total amount owed plus fees & charges. If the auction is
unsuccessful, i.e. the no one is willing to bid the minimum set by the lender, the
property reverts to the lender and becomes an REO (
Real Estate Owned) property and is
held in inventory by the lender.
With the right tools, foreclosure investors may work in several various stages with
great success. Stages such as pre-foreclosure, trustee sale, and REO. Fairplay Foreclosures is experienced in all aspects of these transactions and can help you
successfully invest in which ever is right for you.