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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!
I am interested in purchasing a REO that is listed with a real estate company. Is there a way to find out how much the previous owner owed on the property. I understand houses are listed at fair market value even if they are REO's but this one is in poor condition and needs a lot of work.