Buying a forclosure house

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Apr 10th 2016, 7:19 pm

#46

scrubbedexpat099

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Re: Buying a forclosure house

Quote:

Originally Posted by Pulaski

But the bank is taking money out of one pocket to put it into the other. The money the bank pays at auction isn't "real", they just pay off the mortgage with their own money to remove the lien, they are effectively buying it from themselves, then they own it "free and clear". Obviously it sells eventually at market price, market price for a rough, foreclosed property in most cases.

Exactly.

So if the bank is owed say $200,000, property would sell maybe for that, maybe less, why not take say $180,000 and no further losses fees or costs.

Or were you being facetious?

Apr 10th 2016, 7:26 pm

#47

Pulaski

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Re: Buying a forclosure house

Quote:

Originally Posted by Boiler

Exactly.

So if the bank is owed say $200,000, property would sell maybe for that, maybe less, why not take say $180,000 and no further losses fees or costs. ....

The bank loses control and would have to make a split-second decision to let a house go at auction, and the banks hate to lose control. That said, I suspect that their contract as mortgage servicer for the bond holders stipulates that they bank must "reclaim" the property at auction and then sell it in a controlled and considered manner.

Quote:

.... Or were you being facetious?

I can tell that you would have difficulty understanding whether something is, or is not facetious.

Last edited by Pulaski; Apr 10th 2016 at 7:44 pm.

Apr 10th 2016, 8:57 pm

#48

scrubbedexpat099

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Re: Buying a forclosure house

Quote:

Originally Posted by Pulaski

I can tell that you would have difficulty understanding whether something is, or is not facetious.

I do not need to, I have people who tell me.

Apr 10th 2016, 9:06 pm

#49

Pulaski

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Re: Buying a forclosure house

Quote:

Originally Posted by Boiler

I do not need to, I have people who tell me.

It's good to have friends like that.

Apr 10th 2016, 9:27 pm

#50

scrubbedexpat099

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Re: Buying a forclosure house

Quote:

Originally Posted by Pulaski

It's good to have friends like that.

Certainly is

Apr 10th 2016, 11:08 pm

#51

RICH

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Re: Buying a forclosure house

$85K is approx market value for this house, once it is done up/repaired.

The loan was around 50k, and paid for 20 years, so say 20k debt. Plus fees=judgement $200k!

Will see it on bank of America reo site in a couple of weeks I suppose.

Last edited by RICH; Apr 10th 2016 at 11:10 pm. Reason: Reo not reopen.

Apr 11th 2016, 12:16 am

#52

scrubbedexpat099

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Re: Buying a forclosure house

For how much?

Nothing livable would go for that in CO.

Apr 11th 2016, 12:23 am

#53

RICH

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Re: Buying a forclosure house

Quote:

Originally Posted by mrken30

I did find out recently that you cannot buy title insurance for an auction property for the first 30 days or some other period of time.

I don't really get title insurance. The house in question has provenance in public record
Taxes are paid. What is the risk?

Apr 11th 2016, 12:27 am

#54

RICH

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Re: Buying a forclosure house

Quote:

Originally Posted by Boiler

For how much?

Nothing livable would go for that in CO.

New build house next door went for $140k a year ago. Similar specs, 20 year age difference.

Apr 11th 2016, 1:08 am

#55

scrubbedexpat099

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Re: Buying a forclosure house

Quote:

Originally Posted by RICH

New build house next door went for $140k a year ago. Similar specs, 20 year age difference.

Well you might get something somewhere for that, but not in any of the major areas.

But back on subject probably looking at it logically.

Apr 11th 2016, 1:22 am

#56

Pulaski

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Location: Dixie, ex UK

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Re: Buying a forclosure house

Quote:

Originally Posted by RICH

I don't really get title insurance. The house in question has provenance in public record
Taxes are paid. What is the risk?

Other people, including tradesmen and the HoA can slap a lien on it. It sounds crazy, but their is a risk, even if the reasons for the lien ate frivolous.

Apr 11th 2016, 1:34 am

#57

RICH

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Re: Buying a forclosure house

Quote:

Originally Posted by Pulaski

Other people, including tradesmen and the HoA can slap a lien on it. It sounds crazy, but their is a risk, even if the reasons for the lien ate frivolous.

i get it. but say a roofer put a lien on - there must be a permit for the work or it never happened. That stuff is public record, so why insure. Just check.

Apr 11th 2016, 1:35 am

#58

scrubbedexpat099

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Re: Buying a forclosure house

Quote:

Originally Posted by RICH

i get it. but say a roofer put a lien on - there must be a permit for the work or it never happened.

Could have happened Friday Saturday or Sunday

Apr 11th 2016, 1:39 am

#59

Pulaski

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Location: Dixie, ex UK

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Re: Buying a forclosure house

Quote:

Originally Posted by RICH

i get it. but say a roofer put a lien on - there must be a permit for the work or it never happened. That stuff is public record, so why insure. Just check.

That is soooo not true. I am not aware that any tradesmen who have done work for me, including an electrician, a roofer, three different heating/AC companies, a plumber, and a couple of handymen, have ever obtained a permit. Should they have done? Sure, but do they? Er, no.