In states where a mortgagee has to file a suit to foreclose on a mortgage (judicial foreclosure), the easiest, least expensive way of finding out the previous owner's indebtedness on a foreclosed property is to go to the courthouse for the county in which the property is located. There, with the help of a friendly court clerk, you can look up the case file for the foreclosure action and get a copy of the judgment. That should show the principal balance owed, accrued interest and court costs assessed against the borrower in connection with the foreclosure.
In non-judicial foreclosure states, your information won't be as precise. You'll have to go to the county recorder's office and get a copy of any unsatisfied mortgages filed against the property. With the information found in those documents, you'll be able to, with the help of a loan amortization spreadsheet, be able to back into an estimated principal balance as of a given date. You'll have to "guesstimate" the accrued interest and costs of foreclosure, but you should still have a pretty good idea.
The other option, regardless of whether you are in a judicial or non-judicial foreclosure state, is to pay for the information. In many jurisdictions you will find companies that sell information about foreclosures.
Good luck in your search!
Answer Submitted on Sun, Dec 28 2008
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