We have all seen for ourselves, or at least seen documentary footage of vultures tearing the meat off of the bones of a carcass lying in a field and to go to a foreclosure sale on the back steps of our local county courthouse is nothing different from these images. Individuals and company representatives circling around the henchmen of substitute trustees, bidding and profiting from the misfortune of others who have suffered through the torturous process of having their home stolen out from under them.
Once a 3rd party bidder purchases a property at a foreclosure sale the degree of difficulty increases ten fold because the 3rd party usually has to put up a cash bond with the court before they can bid on any property, and once the bidding is done it’s over.
There is a trick I devised in 2009 when I went to the auction on my home, yes the one I am still in, that really worked rather well. I call it the Red Folder Trick. This is a team effort and takes at lease 2 people to pull off successfully; one with a bright red folder, and another with a video camera.
Here’s how it works. The day before the sale you will want to type up a “LEGAL NOTICE OF CLOUDED TITLE” in where you disclose the date (day of sale), the issues involved, and your intent should anyone raise their hand to place a bid on your property.
In the notice you want to show how the title is clouded. This can be evident and claimed in many ways such as the party selling the property is not a proper party of record, the foreclosure was fraudulent, or any legal violations that you would have evidence of. It is not necessary to state the actual violations, but just the claim thereof should be sufficient to get what you want from this.
One thing better than vague and ambiguous allegations is a Lis Pendens. If you have a lawsuit or any kind drafted, get it filed in a court of competent jurisdiction as soon as you can. Once your suit is filed it will be issued a cause number. That cause number will then be noted on a document titled “Lis Pendens”. Lis Pendens is a Latin legal term when literally translated means ‘suit pending’.
Keep in mind the objective of this tactic is not to stop the sale. It’s too late for that. The primary objective is to prevent any of these vultures from stepping into your pending lawsuit. There is a far greater chance that the same bank will buy it back than one of the vultures there at the sale.
Print 15 or 20 of these notices, and Lis Pendens documents (if you have a Lis Pendens) and put them in your red folder, make sure the batteries in your camera are fully charged, and go to the sale. Get there early, and when the auctioneer gets there you will want to put the auctioneer on notice by presenting a copy of your notice to him or her. Make sure you get this service of notice on camera.
When the auction starts be sure that all of the vultures know that you are filming all of them. Listen very carefully to the auctioneer. He or she may call properties by common address or legal description. You know your address and you should become just as familiar with the legal description of your property so that you will recognize it right away.
As soon as you hear the auctioneer call out your property start waving your red folder in the air over your head and yelling as loud as you can, “CLOUD ON TITLE, ANY BIDDERS WILL BE SUED” and keep repeating this until the auctioneer goes to the next property.
When I did this in 09, I had several people follow me away from the auctioneer when I put her on notice wanting to know the address of the property. I politely told them and all of them looked on their list and scratched my address off of their list. They actually thanked me for saving them the trouble.
I found this tactic worked very well for me when I did it, because of one simple fact. Everybody there is there to buy a house, and nobody is there to buy into a lawsuit.
I really hope this helps.
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