1. Mortgage Default (Pre-Foreclosure)

Mortgage Default occurs when a borrower has not paid a mortgage payment for 3 consecutive months. At that point the lender will file a lawsuit (also known as a Lis Pendens) due to the mortgage default. The lender then becomes the Plaintiff. The borrower becomes the defendant. The defendant or borrower is served with a summons and is now being sued for non payment of the mortgage. At this point the property is said to be in “pre-foreclosure”.

A lawsuit (Lis Pendens) can also be filed for non payment of property taxes by the City. If property taxes are not paid for the period of a year then a tax lien can be filed on the property. The property owner is then sued by the City for the tax default or non payment of property taxes.

askforeclosure.net produces regular reports that include tax defaults for all NYC boroughs.

Our comprehensive reports include all the information that you need to evaluate and capitalize on the pre-foreclosure market. These reports contain the contact information for plaintiffs, defendants, block and lot numbers, index numbers, amount of default, the attorneys handling the lawsuits and their contact information. Our pre-foreclosure reports are made available via email to our subscribers. Our reports are the most cost effective way to find motivated sellers with properties at bargain prices.

We at askforeclosure.net believe that it is at this stage that real estate investors have the best opportunity to negotiate with motivated sellers. You may be able to take over the existing mortgage, give the distressed property owner some much needed cash for moving expenses and give them a chance to save their credit. This can be done with very little cash. By dealing directly with the property owner you have the opportunity to evaluate the condition and value of the property. You may not have this same opportunity if the property goes to auction. Remember you may represent the property owner’s best opportunity to get out of their situation and save their credit. Other strategies for negotiating with the property owner are covered in our Foreclosure Manual in great detail. You may get a copy here.

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