Buying a forclosure house
I had a thread a year ago, here: old thread
This week the court entered a Default on the next door house, which I think means the house will be auctioned in a month or so. (Is that how it goes?) I am thinking about a lo-ball bid. Anyone done this? How was the process. What would make it a non-starter, economics aside? Local county web info: online auction FWIW I bought my house by online bid, from HUD 6 years ago, but am non the wiser how this could/should go. Thanks All! |
Re: Buying a forclosure house
The likely first thing that will happen is that the bank owed the money will send their lawyer down to the courthouse (or if I read your post right, on-line) to bid whatever the bank is owed, thereby ensuring than the bank gets to control who gets to buy the house and for how much, and that it isn't "stolen" for a lot less than the anount owed. True low-ball bids rarely succeed in foreclosures where the mortgagee has defaulted.
Tax lien foreclosures can have greater potential for winning with a low-ball bid, depending on how much the tax lien is allowed to increase before the taxing authority forecloses. |
Re: Buying a forclosure house
Originally Posted by Pulaski
(Post 11756441)
The likely first thing that will happen is that the bank owed the money will send their lawyer down to the courthouse (or if I read your post right, on-line) to bid whatever the bank is owed, thereby ensuring than the bank gets to control who gets to buy the house and for how much, and that it isn't "stolen" for a lot less than the anount owed. True low-ball bids rarely succeed in foreclosures where the mortgagee has defaulted.
Tax lien foreclosures can have greater potential for winning with a low-ball bid, depending on how much the tax lien is allowed to increase before the taxing authority forecloses. I was thinking a $20k bid max, given the old thread, where I guesstimate the debt, which is also in line with the vacant lot sales last year. |
Re: Buying a forclosure house
Originally Posted by RICH
(Post 11756458)
Sounds like a reasonable assumption. So the bid would need to cover the outstanding debt to be viable? Or the bank not paying attention, or wrote it off?
I was thinking a $20k bid max, given the old thread, where I guesstimate the debt, which is also in line with the vacant lot sales last year. |
Re: Buying a forclosure house
Just curious is a bank forced sale the same as a foreclosure?
I know it's in Canada but maybe the US does something similar, the house next to the mother in law recently sold but the sign on the real estate sign out front said bank forced sale. I know the people who lived there didn't own it, the husbands mom did, and she died unexpectedly from a heart attack and paid the mortgage, so I assume that's why the bank forced the sale. Sold for a nice chunk of change 789,000. |
Re: Buying a forclosure house
I wish we had tried to buy the foreclosure next to us.
What is it about that house that attracts crazy people? Never fails..3rd one in a row! Mind you looking at what is going on there it may be back into foreclosure again soon:fingerscrossed: |
Re: Buying a forclosure house
Originally Posted by Pulaski
(Post 11756441)
The likely first thing that will happen is that the bank owed the money will send their lawyer down to the courthouse (or if I read your post right, on-line) to bid whatever the bank is owed, thereby ensuring than the bank gets to control who gets to buy the house and for how much, and that it isn't "stolen" for a lot less than the anount owed. True low-ball bids rarely succeed in foreclosures where the mortgagee has defaulted.
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Re: Buying a forclosure house
Happens all the time, Bank buys it back.
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Re: Buying a forclosure house
Disappointing. I just registered on the auction site and a quick search revealed 6 sales this year in my zip code with BoA as the plaintif/bank. All were won by BoA using $100 auto bids. 2 they got for the $100, the others for $100 over the next bidder, but substantially less than the judgement amount, which I suppose what they are owed.
2 more sales are scheduled, so I will watch those. Mine is not listed yet, so a bit more court action to come I suspect. Interesting though, very e-bay-like. |
Re: Buying a forclosure house
Originally Posted by Boiler
(Post 11756711)
Happens all the time, Bank buys it back.
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Re: Buying a forclosure house
Originally Posted by Pulaski
(Post 11757232)
It's pretty much a required step to get the property registered in the name of the bank so that the bank can sell it.
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Re: Buying a forclosure house
Originally Posted by RICH
(Post 11765679)
Odd thing. I am on the prowl for a disney villa to rent, and I dug up the address of the one Dad rented 10 years ago. Perusing the public records, it was apparently acquired last month at auction, by the HOA for $100 who had a lien for fees, and not the bank with the 250k mortgage... what can one make of that info?
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Re: Buying a forclosure house
Somebody screwed up?
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Re: Buying a forclosure house
Originally Posted by Pulaski
(Post 11765682)
The bank wasn't notified and dropped the ball (didn't notice). :eek: ...... I suspect the bank will sue the HOA for the value of the mortgage, so the HOA had better make sure they sell it for at least that much!
So, the owner just got fed up with getting whacked with HOA fees and presumably various fines for not doing whatever they wanted them to do? Even so, this could turn out to be a lucrative business for a local HOA. If they sell for a profit, what do they get to do with the funds? Are they under obligation to make that information publicly available? |
Re: Buying a forclosure house
A friend of mine was fined by her HOA $100 for over watering her plants.
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