Frequently Asked Questions

HELP! I just got notice of default. What can I do?

First, avoid two common mistakes.

Banks and mortgage lenders make billions of dollars in loans for which they receive interest for themselves and their investors. When a loan is in default, they must foreclose. They don't like to foreclose because it is expensive and slow, and the best they can hope for is to keep their loss as small as possible. Often they receive only 50% to 60% of their money. They try for months to get the borrower to get the loan current. The average time from first default to filing the foreclosure suit is nine months. This shows their reluctance to hire the attorneys and incur other costs. But, once they have started the process, they fully intend to force the sale.

Homeowners with a house in default normally get behind on their payments due to a change in financial situation, often a temporary thing, one they believe can be solved. Almost all initially believe they can solve the problem, yet almost all* eventually lose not only their home, but get a damaging foreclosure on their record, plus many get a deficiency judgement that hangs over them from now on.

Those who face reality know there are only three choices: (1) let the house go and accept the bad consequences; (2) sell the house quickly and start fresh somewhere else; or (3) negotiate a repayment agreement and avoid moving. Unfortunately, many people end up losing their home because they believe there must be other options.

Sell: Once the foreclosure is filed, the only possible buyers are cash investors, like me. A cash investor must buy at a substantial discount from normal market value, and this is often less than the lender's claim. That requires a "short sale" where the lender agrees to accept less for release of their claim. It's difficult because lenders get a Broker's Price Opion (BPO) that shows normal market value. However, I have negotiated many such short sales over the years.

Repayment Agreement: Lenders have thousands of loans in default and they no longer trust these borrowers. If the borrower attempts to negotiate repayment directly with the lender, it is often a mistake. Whatever the lender offers is not negotiable. A disinterested third party can do better. I have negotiated many successful agreements for two main reasons: First, I'm not the borrower. This means I have more credibility than the borrower. Second, I have done this for years and know how to talk to lenders. If we work together to get an acceptable repayment agreement, this is the best option because you don't have to move.

* According to our data during the last year, more than 85% sell at Sheriff's Sale.

Two Mistakes to Avoid

1. Fight the lawsuit: Many homeowners with a house in trouble make the mistake of wasting money for an attorney to fight the foreclosure law suit. While we always recommend getting good legal advice, it is important to realize that very few such suits are defeated. Why? Because lenders have years of experience and write their notes and mortgages so they can't be defeated. Normally, the best an attorney can do is delay the process. This, of course, increases interest expense, costs and fees, so the longer the delay, the more difficult the solution.

2. Declare bankruptcy to stop foreclosure: Bankruptcy can delay the process, but it will not stop foreclosure. Here's why. Bankruptcy relieves unsecured debt, like credit cards. Home mortgages and car loans are secured loans. When the bankruptcy is filed, the court issues an "Automatic Stay" which prevents creditors from taking any further collection action. It is a simple matter for a lender to get the court to remove the Automatic Stay from the house, and proceed with the foreclosure. Unless you need to declare bankruptcy for other reasons, the cost is wasted.

What is a Deficiency Judgement and why is it likely?
By the time a foreclosure law suit has reached the point of a judge's Final Judgement, many costs have been added to the loan balance, such as interest that has accrued from the first payment in default, attorney fees (often over $3,000), title search, property preservation and protection, court costs, poundage, filing fees, etc., so additional costs of $5,000 or $10,000 are not unusual. Suppose the Plaintiff's (lender) Claim is for a loan balance of $100,000 plus $10,000 in additional costs. The judge has issued a final decree that means that $110,000 is owed by the Defendant (borrower) to the lender.

At the Sheriff's Sale auction, the Plaintiff can bid up to the amount of their claim with credit, meaning they don't pay any cash. Bidding starts at about 60%, and final bid averages less than 80% of tax assessor's market value. Whatever the final bid, it is likely less than what they are due and this becomes a deficiency, payable by the borrower (homeowner). Using the legal process that has been designed and refined by the lending industry, the lender can receive another court order of a Deficiency Judgement against the borrower which can be filed against any property the borrower may own in the future, attach bank accounts, even garnish wages.

If you would like to read about your law suit, go to www.oscn.net, and enter your County and case number ("CJ-xx-xxxx"). If you can find "Journal Entry of Final Judgement", the actual document is either available from the web or at the court house. Often this document prepares for the deficiency judgement on the assumption the lender will get less than the amount owed, as with this typical language.

"That should the proceeds of said sale be insufficient to pay the Plaintiff's judgment, Plaintiff may, within ninety (90) days of said sale, apply for leave to enter a deficiency judgment against such defendants as may be personally liable on said judgment, and upon such application the same shall be set for hearing to determine the amount of such deficiency, if any, all as provided by law."

How can I get answers to my questions?
In Oklahoma County, every two weeks about 100 to 150 homes are listed for sale at the Sheriff's Sale. Several months earlier, most of these folks thought they could keep their home. Sadly, almost all not only lost their home and had to move, but ended up with a foreclosure on their record and a big deficiency judgment hanging over them from now on.

The wise ones realized there are only three choices: let the house go at auction, sell quickly and start fresh somewhere else, or get help, a way to get current with the lender. Lenders don't like to foreclose, but once they have decided to, it is difficult to negotiate a repayment agreement on a loan they consider bad.

If you have more questions, please send us an email. We'll be glad to help find the right answers for you.

What is the average final sale?
As of the October 30, 2008 sale, the average final bid by investors was 75.12% of tax assessor market value, and $105,527. The period covered is November 29, 2007 to October 30, 2008, twenty-five sales, totalling 264 properties. According to the Oklahoma County Tax Assessor, 95% of their values are below actual market value.

Plaintiffs bid with credit and final prices are unknown (until they sell their REO), so only buys by investors are used in this calculation. Market value is the higher of Tax Assessor value or Sheriff Department appraised value.

What percentage of Sheriff sales are bought by investors?
When a property is sold at Sheriff Sale, it is bought by either the lender using judgment credit or an investor using cash. On average, investors buy only about 22% of them. This page shows that percentage dropping sharply the last several months. For example, from about 27% in late August to about 6% in early October. This normally happens when a real estate market is soft because most Sheriff Sale investors look for a quick resale. When the real estate market in Oklahoma County slowed, investors either sit on their cash or find other investments.

How do you build the database?
Except for the map grid and zip code, we get all data from internet sources. First, we pick up the sale list from the Oklahoma County Sheriff's Office. Next, data from the Oklahoma County Assessor pages is added. Then, the CJ (Civil Jurisdiction) document is linked from the Oklahoma State Courts Network pages, and we read the Final Judgment to determine Plaintiff's claim. Then, we use the Mosher-Adams, Inc. Oklahoma City Street Atlas to add map page, map grid and zip code. Finally, our software crunches this data to calculate all of the other fields.

Our proprietary software also publishes the database so it can be sorted and displayed in several useful ways. It takes about 16 hours of tedious work to prepare each sale, and this allows our subscribers to access the data in seconds.

How do you calculate value increase?
Prior Year's Market Value is compared to current Market Value and change is calculated as a percentage of prior value. Decrease is shown by minus sign in front of the percentage. Then, value increases for each zip code are totalled and averaged. Both List and Page views show Market Value, Prior Market Value, Value Increase, and Average Increase for that zip. This allows you to see how this record changed in relation to others in the same general area (zip code).

The Tax Assessor's Office calculates Market Value for the purpose of assessing taxes. This may not be an accurate representation of true market value, as might be determined by professional appraisers. However, these values are useful for comparing one property to another, the real purpose of this database.

Value Increase page shows the result of studying our entire database. Of the total of 1,815 records, 1,693 met the requirements of this study: Unusual change of plus or minus 50% omitted; Residential only; and market values for 2005 and 2006 available. Unusual changes were omitted for several reasons, for example, structure added or removed. Classes other than residential, for example industrial, office buildings, duplexes, etc. removed in order to study single family residences. And, a few records did not have current values shown. In summary, values are still increasing, but slower than last year.

How do you recommend I use your list?
This system is designed to save time when screening for possible purchase targets. We have asssembled data you can access in seconds that would take you many hours to compile. The first screen you see is a complete listing of the next scheduled sale. Click on "Search & Sort" button to see a screen for you to input search criteria. For example, you might like to see all listings built in a range of years, in a specific quadrant of the city, and in a minimum bid range. Before you click the same button again, set your desired "Sort By" field. The next screen you see has selected only those records that meet your search criteria and sorted as you wish. Use your back button to return and sort by another field or change your criteria.

When you have a list of desirable targets, you can inspect each one by selecting its radio button and clicking on "Select Page." You can then print out this page and study more detail. Now you are ready to do serious research. This is a screening tool to determine the targets for research.

What research is needed?
We recommend you first verify the information in our list. All data is entered by hand and mistakes are inevitable. The 'Assessor' number and 'Case#' are links to get county and court information.

Next, identify all effective liens and encumbrances against this property. The Oklahoma County Clerk's web site allows you to search several ways, but they recommend you consult the actual records. You can also buy a Title Report from a reputable title company. Mortgages, liens, judgements, etc. are all claims against a property, their seniority determined by the date of filing. Typically, a purchase money loan is secured by a first mortgage, meaning it is the first recorded. A home improvement loan is also secured by a mortgage, and if recorded after the first, is called a second mortgage. Foreclosure on the first will extinguish (eliminate) the second and all junior liens. Foreclosure on a second will not extinguish a first. So, what is being foreclosed and what will remain after sale?

IRS tax liens, property taxes due and municipal liens will not be extinguished by the Sheriff Sale, and this is the time to get legal advice. You need to know what will happen after the sale.

Finally, you need to know the property condition. If possible, visit with the homeowner and inspect the interior. At least, look at the outside, what you can see from the street, or without objection from the homeowner, by walk-around. Generally, the outside condition of a house will forecast the interior condition. People who take care of the exterior normally also take care of the interior. What repairs and costs will you have after ownership?

How do I buy a property at Sheriff Sale?
Sales are conducted every other Thursday at the Okla Co. Courthouse Annex Bldg. (Kerr Ave. & Hudson), Room 513 (Jury Room), at 2:00 pm. They start promptly so you should arrive before then. Register as a bidder and receive a bidder card before going into the room. The deputy conducting the sale first announces listings that have been recalled, meaning they will not be sold that day. There is also a listing of recalls posted outside the room.

Sales are conducted in the order listed, so you should print out our list* and be ready for your desired property. The deputy announces an auction for a property by calling its CJ number and the names of Plaintiff (lender) and Defendant (borrower). The Plaintiff's representative normally makes an opening bid. Other bidders may top that bid by at least $100. When bidding stops, the deputy gives warning, and if not topped, announces sale amount and records the winner and runner-up bidders' numbers.

If you are the successful bidder, you will be expected to pay at least 10% of the price within 24 hours and the balance within 9 days. Obviously, funds must be certified. Contact the lender's attorney and learn when the Confirmation Hearing will be held (normally two to three weeks after the sale). These hearings are conducted every Friday before a judge. If payment has been made and paper work is complete, the judge will issue an order that creates your deed to the property.

*Subscribe to our service and save hours of time for research. Questions? I'm Jim Turner and I always sit on the front row. Or, send email.

How does your list navigation work?
When you purchase a subscription to Oklahoma Foreclosures, you see a screen that requests you to enter a desired password. To login, you enter your username (email used in your purchase) and your selected password.

When you first login, the system checks today's date and presents all listings of the next scheduled sale. The button in the upper right corner of all pages ("Home") after login will always bring you back to this "Home" display.

From this page, you have four choices: "Search & Sort"; "Statistics"; "Sale Results"; and "Select Page".

"Search & Sort" presents a page where you can enter desired search and sort criteria. Click "Search & Sort" button on this page and the next screen is titled "Database Report." It shows the number of records found in this search and how the list was sorted. You now have two choices. You can select a radio button on the right and click "Select Page" to see detail of a single record in page view. Use your back button to return from this page. Or, you can check a number of boxes on the left and click "Select List" to display only those records checked. The resulting report is titled "Selected List" and displays only those records checked. Your navigation choices now are the same as on "Home", plus a map button. This allows you to see the selected records plotted on a map of the Oklahoma City Metro Area which can be printed.

"Statistics" presents a table summarizing all sales in the database and four choices of detail display, each allowing you to choose the sale date you want to see analyzed. "Display Graphs" shows bar charts of several analyses; "List Plaintiffs" shows a list of all plaintiffs in this sale; "List Attorneys" and "List Defendants" does the same respectively. You can either use your back button or click "Home" to return.

"Sale Results" presents a summary of sale results for those sales we researched and recorded final bids. This also presents a button to list all successful high bidders (investors).

"Select Page" requires that a radio button for a record be checked. It presents a single record in page view with a great deal of detail, including the available photo, comparable sales from the Tax Assessor record with averages, and if after sale date, the results for this property. You can either use your back button or click "Home" to return.

How can I print a map of selected records?
See "Navigation" above. Search for a group of records that meet your search criteria, check the checkbox on the left of those you wish to plot, then click "Select List" to display only the selected records. This screen has an additional button, "Map." When clicked, a map of the Oklahoma City Metro area is displayed with markers for each selected record overlaid in approximate position.

Positions are approximate because display varies with different browsers, i.e. Netscape, Internet Explorer, etc. Don't be concerned if a marker is in the middle of a lake. The relative position of records to each other is the important thing because most use of this map will be to plan a tour of selected homes, and the order of travel.

This map can be printed, just like any web page. Experiment with your Page Setup for desired results. Keep in mind that only one marker can be shown for a specific coordinate. If more than one record has the same grid location, only the last will be shown. Vertical or "Y" axis ranges from "A" to "NN". Horizontal or "X" axis ranges from "1" to "42".

Google Map: The navigation link "OKC Map" at the bottom of this page displays a map of Oklahoma City centered on the Oklahoma County Court House. The controls in the upper left corner allow you to zoom out and in and jump in any direction. You can also click and drag the map (left mouse key and drag). Clicking on the map places a marker and clicking that marker removes it. Controls in the upper right set display: map only, satellite view only, or hybrid satellite and map. Place markers for your selected targets then zoom to get the best view and print.

How can I list all high bidders?
The "Sale Results" button on the home page displays a summary of sale results for all sales in the past year. The "High Bidders" button on that display presents a list of all investor high bidders from the last year, arranged alphabetically. If an investor has resold that property, a second line shows the sale results and profit. If there is no second line, it may mean the record has not yet been updated, or that the investor is holding this property in inventory. A radio button on the right of each listing will display the page view of that property.

The Final Bid price paid by the investor is recorded by observation at the sale and is exact. The Sold Amount shown by the Tax Assessor record is calculated by mortgage stamps and is approximate, and will not reflect any cash or trade involved in the sale. It may be of interest to you to know these averages: average time from buy to sale is 149 days; average profit per property is $25,000; average yield on investment (Profit / Final Bid) is about 35%. Selecting a particular radio button and clicking "Select Page" button will present that single record in page view. The bottom of all page views contain the final results including the name of the high bidder.

Two or three weeks after the sale, the case documents reference the Sheriff's Return or Order Confirming Sale. This is how we know which auction sales are completed, with final amount paid and by which investor or lender. We also know the average time from first past due date to date of Sheriff Sale is 445 days, or about 15 months.

Wherever the assessor record number is shown, it is a link to the Tax Assessor record for that property. Periodically, we review records of investor buys to see if the property has been sold, when and for how much.

What happens after the sale?
A study of 465 investor buys (not plaintiff) since July 28, 2005, yielded some interesting and perhaps surprising facts.

The most common result is a confirmation hearing is held about three weeks after the sale where the judge orders the Sheriff to issue a deed to the winning bidder, as well as other orders.

How many of all sales confirm? 77.6% are confirmed. That means 22.4% of sales are vacated. Sometimes the loan is paid off and vacation is due to release of the mortgage. But, most often, these properties are sold and confirmed at a later time.

How long does confirmation take? Often the procedure requires publishing notice at least ten days before the hearing. Sales happen on Thursdays and confirmations on Fridays. The average time from Sheriff's Sale to Confirmation Hearing is 30 days, because 23.4% take more than three weeks.

How often is bankruptcy the cause of vacating the sale? 28.9% of those sales not confirmed were vacated because the homeowner declared bankruptcy. Almost all of such properties are sold at a later time because bankruptcy does not stop foreclosure, only delay it.

How often do bidders renege on their bid? Whan a bidder fails to pay any money to the court, it is called "Bad Faith bid." The number is low, only 6.3% of the time. The surprising thing is that fact is promptly forgotten. Later bids are accepted, even by the same law firm that used the 'bad faith' label.

How often do sale proceeds exceed lender's claims? That is, how often is excess left for the homeowner? It is not surprising this doesn't happen often, only 15.7% of the time. Which means, of course, that 84.3% of the sales do not yield enough to clear claims.

When the borrower is due the excess over claims, it can take several months to get that money. If not held for some reason or not cleared earlier, the court sends letters to the attorneys involved asking for an order to be prepared to disburse those funds. But, the court does this infrequently, about every three months.

What is surprising is the small number of deficiency judgments. Even though more than 80% fail to clear claims, only 1.7% of those result in filing for deficiency.

Partners Wanted!
My primary activity is contacting homeowners in default as early as possible, before announcement at a Sheriff Sale. My goal is to buy the property for a fair price thus allowing the homeowner to avoid foreclosure on their credit record and probable deficiency judgement and make a profit for myself or assignee. I find more contracts than I have cash, so I'm always looking for partners. Typically, I contract to buy at an attractive price, then assign my contract to a partner. In return for a fee to me, my partner has the right to buy at the contracted price.

Here's a recent example. A very nice home in an excellent neighborhood, four bedroom, two bath, two car garage, with swimming pool, appraised at $165,000. My partner was able to buy it for less than $115,000, including my fee! If you have cash and are looking for profit opportunities, contact me.

What Really determines market value?
Many people, even real estate professionals, mistakenly believe that value is a function of Location, Location and Location. An MAI Appraiser often defines it as "... willing seller, willing buyer, neither under duress and both well informed ..." Professional appraisers also use three primary approaches to value: comparable market (mostly used in used residential sales); income production (mostly used in apartments); and building or replacement costs (often the main factor in new construction). These things are familiar to most real estate practitioners. (This is a gross simplification. The concept of value has been for centuries and continues to be a very complex subject.)

We know from personal experience, that such intrinsic or objective value is often changed in the real world. Instead, the seller's motivation is much more important. Consider two different owners of identical properties. The first has no urgency to sell and wants the maximum price. This seller might list the property above comparable values, wait for six months, then try again. This person doesn't care if it sells. The second has an urgent reason to sell quickly, for example a homeowner in default, who often wisely accepts a lower price.

To such an owner, the most important objective they have at the moment is to get rid of the burden. Often, they are willing to just transfer their position to another. If they are fortunate enough to find such an investor, they win because they avoid foreclosure and deficiency judgement, and are able to start fresh somewhere else. The investor wins because they have the cash to cure the default and make a profit on the property equity. It becomes a win-win for everybody, including the lender, who gets the loan brought current and off their books as a 'default'.

What is the most important profit in foreclosure investing?
There are at least three possible profit centers, appreciation, positive cash flow, and amortization and the first is by far the most important. As investors, our goal is to control (which may not mean own) a property that is rising in value for a period of time, the longer the better. According to the U.S. Census Bureau, in the last 35 years, home prices nationally have risen an average of 6.73%. Suppose you are able to buy or option a house valued at $200,000 today, for that price. At that rate, the house will be worth $213,460 in one year, $227,826 in two years, and $243,158 in three years. In just 36 months, your profit is $43,158, give or take depending on the circumstances of future sale. If your initial cash investment was $5,000 (and there are many such properties available for less), that would be a return of about 870%!

Positive cash flow is the difference between what you get and what you pay. If you are able to rent such a house for $200 a month above your payments, in 36 months you will have received another $7,200. Amortization is the reduction of principal. For a $200,000 30 year loan at 6.5% interest, after 36 months, principal will have been reduced, thus your equity increased, by $7,166. In summary, the investor's most important ally is time.

Why do motivated sellers want out of their property?
There are seven reasons:
1. Relocation.
2. Divorce and relationship problems.
3. Financial difficulties.
4. Tenant problems.
5. Probate.
6. Downsizing to a smaller home.
7. Desire for a larger home.

The degree of urgency and time needed determine their degree of motivation. For example, someone moving in three weeks who can't afford payments on two houses is motivated by relocation.

How to buy 'Subject To' existing financing
Just about every loan written for the past 20 to 30 years contains a due-on-sale clause. According to this clause, if a borrower sells the property without paying off the loan, the lender has the right to accelerate the loan and call it due within 30 days. Though it sounds tough, the clause is more intimidation than substance — a paper tiger. Black's Law Dictionary defines a due-on-sale clause as a "device for preventing subsequent purchasers from assuming loans with lower than market interest rates." When current interest rates are higher than the existing, of course, banks would love to have a new buyer assume the loan (and pay all the upfront costs associated). But, if current rates are lower, they would be reluctant to do this. In either event, they won't even know about the transfer unless you flaunt it. And, there is nothing illegal or unethical about buying subject to — it is a common thing.

Yet, many investors avoid this simple and powerful tool because they think assumption or refinancing is a necessity. It is very simple; your purchase contract merely states the price is "subject to" and you spell out the details of the existing loan. It means you take title and take over making the monthly payments, without formally assuming the loan. Before we go into the five main advantages to you, the investor, let's look at the seller's perspective.

The most successful investors have the philosophy, "Before I can find a win for me, I must first find a win for the seller." In exploring options with a seller, for example, one in foreclosure with little equity, the first one that may come to mind is a full cash sale that stops the foreclosure and gives the seller all of her money. Obviously, that won't work for an investor because there is a lot of risk and little profit potential. Put another way, there are better options for the investor, with other properties.

Suppose this seller is highly motivated because she is several thousand dollars behind on payments, interest, attorney fees and other costs. Further, that she doesn't have the money to cure the default or it would have already been paid. Even worse, her financial condition has changed and she can no longer afford the payments even if the default were cured. If the property goes to foreclosure sale, she will lose the money she has already invested with down payment, payments, improvements, etc., plus get a foreclosure on her credit record which will make it very difficult to ever again get a loan, and, she will probably have a deficiency judgement hanging over her from now on.

Such motivation and situation are not only not unusual, they are common. In Oklahoma County, each month there are about 200 foreclosures filed and this description would fit most. By national averages, about 2.3% of all houses are in some stage of foreclosure. When you drive down a street, that means that about 1 in 40 of the houses you see is being foreclosed! If a city block had five houses on each street, that would mean one every other block!

In this common situation, a good solution for the seller would be an investor who pays the arrearage and takes over the payments, which is what we are talking about. Getting rid of her problem is a hundred times more important to her than the downside which her attorney would bring up — she stays on the loan. And, if that is a sticking point, there are ways to mitigate it, such as agreeing to pay off the loan sometime in the future.

Here are the obvious advantages to you, the investor:
1. Tax Advantage, as the owner, you will get all the advantage of tax benefits.
2. No new loan costs such as points, loan origination fee, appraisal fee, loan application fee, lender's title insurance policy, escrow fee, pest inspection and certification fee, document preparation fee, recording and courier fees, and possibly a new survey cost.
3. No need to qualify and your credit is not an issue.
4. No personal liability you will have no personal liability for the loan, it's still in the seller's name.
5. Better interest rates because banks typically offer owner-occupants better rates than to investors.

There are other benefits to buying a house with little or no cash. Your risk is so minimal, you will probably get a low cost title report and avoid the expense of owner's title insurance. If a dangerous cloud on title ever appears, you can always just give the house back. You don't need an expensive escrow closing — prepare, or hire an attorney to prepare, warranty or quit claim deed, have your seller get it notarized and file it at the courthouse. That's all. You now own the property. Besides all of these benefits, you have little to worry about. Suppose the lender happens to notice among the thousands of payments they receive each month, that your name is on the check instead of the borrower's and they contact you. So what? If they call the loan you will have several months to either refinance or sell the property. There are other details which we teach in our Foreclosure Workshops, but the important thing is this: selling 'subject to' is a win for everybody, the seller, the investor and the lender.

Are you available as a Consultant?
Maybe. If you are attracted to the foreclosure industry as a way to make money, but have little experience or are unsure of how to proceed, this may be a way for you to get your feet wet. Perhaps you have a little cash but not enough to learn by making mistakes. Or, maybe you just don't have time to thoroughly learn the business. Of course, nobody can guarantee a profit in any investment. There is no such thing as reward without risk.

But, I can show you how others are doubling, or better, their investment each year. As little as $10,000 can get you started. And, the more cash you have to work with, the faster you can make profits. I track disposition of past sales and I find many examples of buying at 80% or less of tax assessor value and selling within three months at 120% of that value. Because of my knowledge and experience I can show you how to do the same, with little or no risk.

If this possibility is of interest to you, the first step is to send me an email. I suggest you tell me what you want to accomplish, how much cash you have to invest, and how and when to call you by phone. Contact me. We can then explore possibilities by phone or in person.

What does the Demonstration show?
It shows exactly the same things as the subscription service, except that it is a part of the same database. The full database has records for an entire year, and the demo database covers only six months, from February 23 to August 24, 2006.

The full service opens with a listing of the next scheduled Sheriff Sale. The demo opens with the 02/23/06 listing. These list views are called whenever you click "Home" at the top of all pages. From this list view, you have several choices. The first button calls a search page where you can enter the criteria you want to search. You can also sort various ways. When you click "Search & Sort" button on that page, a report is generated from your search and sort criiteria. You can then select a number of these records with checkboxes on the left, again sorting as you wish. The next report lists only the records you selected. You can also print a map of those selected records.

When in a list view, you can select a single record with a radio button on the right and click "Select Page" button at the top. This displays a single record in page view with more detail than is available in a list view, including a photograph or floor plan drawing.

There are two other blue buttons at the top of the Home View: "Statistics" and "Sale Results." "Statistics" displays details about all the sales included in this database, as well as statistical data of Graphs, Plaintiffs, Attorneys and Defendants for each sale. "Sale Results" shows details of each sale. Also, a blue button "High Bidders" on that page displays in alphabetical order all successful auction buys by investors (not by lenders). If an investor has resold that property, a second line shows the sale results and profit. If there is no second line, it may mean the record has not yet been updated, or that the investor is holding this property in inventory. A radio button on the right of each listing can display the page view of that property. In all page and list views, links are provided on the Case Number and Tax Assessor record number to display the OSCN case docket and the TA record respectively.

The Final Bid price paid by the investor is recorded by observation at the sale and is exact. The Sold Amount shown by the Tax Assessor record is calculated by mortgage stamps and is approximate, and will not reflect any cash or trade involved in the sale. It may be of interest to you to know these averages: average time from buy to sale is 149 days; average profit per property is $25,000; average yield on investment (Profit / Final Bid) is about 35%.

When "Logout" at the top of most pages is clicked, the log in page is displayed, which is back out of the demo in the main web site. When "Help" at the top of most pages is clicked, this page with appropriate question and answer is displayed.

What does Page View show?
Page View shows more detail of a single record. The first row contains a link to the OSCN case document at the case number. That document shows everything that has happened to date. For example, the "Journal Entry of Final Judgement" in that document is used to calculate the items on row seven: Loan Balance; Arrearage; and Plaintiff's Visible Claim.

The Assesor Record number on row three is a link to the County Tax Assessor record on this property. In March of each year, the Assessor's Department resets Market Value. Rows eight and nine show Prior Year's Market Value, Market Value Increase (or decrease) over the prior year, Average Value Increase for this zip code, and current year's Market Value.

To the left of the photo are shown averages of the comparable sales side-by-side with the same values for the subject property. Below that is shown the Sheriff's Department Appraised Value which is used to determine the Minimum Bid (two-thirds of appraised). Then, the Minimum Bid is calculated as a percentage of Market Value and as per square foot.

Below the photo are shown up to ten comparable sales which are taken from a link on the TA record ("View the 10 newest sales"). That page explains the criteria used by the Tax Assessor software to pull the most recent comps.

The Final Results table at the bottom of the page displays according to current status. Before the sale, only Market Value is shown. After the sale and after the investor sells this property, additional data is shown as explained in the head of this table.

How can I list only certain records?
Once you set search criteria, the resulting report contains check boxes on the left of each record. Check only those records you want then click the blue button "Select List." This displays a report of only the selected records. If you want to select from more than one sale date, in search criteria set Sale Date to "All." Then find the records you want to check.

The resulting report is titled "Selected List" and contains instructions for your possible choices. You can also choose "Map" to print a map showing location of the selected records.

How can I guess the lender's bid limit?
Lenders tell their attorney whether to bid at all and if so, where to stop. It is not possible to accurately guess where the lender will stop bidding, but you can get a general idea from the Plaintiff's Visible Claim, shown in list view and page view on each record.

We also calculate this claim as a percentage of market value, shown following the visible claim. In the Search function, you can also sort by this percentage. Of course, it is constantly changing but currently Visible Claim averages 94.89% of market value.

The "Journal Entry of Final Judgment" or similar name shown in the case document normally says the loan balance, the interest rate, past due since a date, the attorney fee, abstract and title expense and other known costs. Our software calculates the interest from the past due date to the date scheduled for Sheriff Sale (the average time is 445 days, or about 15 months), and adds these items together to calculate Plaintiff's Visible Claim and the Arrearage (difference between loan balance and visible claim). All three items are shown in page view (Loan Balance, Arrearage and Plaintiff's Visible Claim).

There are always other additions to the Plaintiff's claim, often $5,000 or even $10,000 more than the visible claim. That's why the visible claim is only approximate.

Lenders (plaintiffs) normally bid only with credit from their judgment. If their real claim is less than the minimum bid, they don't bid at all. Before the sale, they have estimated what they can sell this property for and set a target for their attorney. To provide for maximum deficiency judgment, they want to property to sell at auction for the lowest price. The lower the price, the higher the deficiency will be. If you know the Plaintiff's Visible Claim, you can guess where they will drop out.