Buying Properties At Auction – Watch Out!
Question: We were buying properties at the auction. The loans that we are aware of are:
First $70,000. (this was a personal loan that we think got satisfied)
Second $350,000. Wachovia
Third $124,700. Wachovia
A Judgement too! We think it started out at $463,000. and ended at $137,000, We’re not sure about this number.
But we paid $137,000 at auction all cash, cashiers check, we’re idiots!!!
Can we get this rescinded????
HELP, I’m begging you with everything we are, we lost $137,000 cash, our life savings. We were ‘robbed’. We live in Los Angeles, and less than a week ago, we bought a Palm Desert house at a “home foreclosure auction” at the Riverside Court House. But we found out a few days later, we didn’t buy THE HOUSE, we bought the 2nd loan, or the 3rd loan? What… how can this happen? How is it even legal to sell debt at a courthouse!!!!
HELP US PLEASE… THIS IS OUR LIFE SAVINGS! We have been together 14 years, we don’t even know who to turn to for answers. We’re frankly still in shock.
We thought we were buying a house and we bought the loan??? or did we buy the 2nd loan, the third, the judgment? How can that even happen? WHAT! …at the courthouse? why is anything like that for sale even? it’s legal to sell house debt? that’s like selling air? we bought nothing? we don’t understand? we bought someones debt?
we cant be the only ones! THIS STORY HAS TO BE TOLD TO PEOPLE. THE GOVERNMENT NEEDS TO REGULATE THIS!!!!
i’m sick, just sick we don’t even know if we can make it through this.it’s like death around here in our apt here in LA it’s like our dog has drowned in a swimming pool or something, or worse i’m worried about us even making it after all these years (almost 14), all that scrimping & saving, all those older cars (we drive late-model cars to save money), not going out to eat, not going on extravagant vacations, & wearing yard sale clothes, we even wear yard sale shoes! & our hopes, dreams, then we somehow get caught up in this…?
$137,000 is a lot of money
PLEASE please let us know something! SOME KIND OF DETAILS! something… we’re just so sad
we have to HAVE to get this rescinded!! we MUST get this story out there too to protect other people, with the record number of home foreclosures in the news, people need to hear this story!!!
i am a LAUSD school teacher & todd is a part-time news editor at NBC nightly news. we’re not stupid people, we’re hard working, honest, good people. we are the most cautious, careful, deliberate people we know
We have no where to turn but to send emails to media, politicians, banks, real estate agents, real estate attorneys, ANYONE WHO WILL LISTEN
Our info and contacts:
Paul & Todd
chickenhow@yahoo.com
Answer: – WOW!!! YOU DON’T EVER BUY PROPERTIES AT THE AUCTION IF YOU HAVEN’T DONE YOUR DUE DILIGENCE FIRST. There are so many things that can happen and things you need to be aware of. This makes me sick just thinking about it. In most cases, the money is non-refundable. This is why it is so important to check title, find out what other liens are on the property, and make sure the 2nd or 3rd is not the one foreclosing. In some cases, homeowners keep making their 1st mortgage payments but stop making their 2nd and 3rd. If the 2nd decides to foreclose, that’s what you are bidding on.
I would definitely call some real estate attorneys locally and see what options you might have. The sooner you do it the better.
This is what happens, I get people like this all day long every day, buying seconds and thirds or HOA s. this is my Job buying houses at court steps has been for 13 years.
I have seen millions of dollars spent buy inexperienced investors thinking they are getting a deal, another problem is when they finally get possession of the property they realize the huge problems with the property, Please if you are thinking about purchasing go to a pro.
Jack, I couldn’t agree more. Auctions are not the place for beginners.
I would love for anyone out there that might be able to give me some options to what my options are here. Here is the deal, my wife and I were in the process of closing on a house that we find out 3 weeks till that it has been foreclosed due to seller not making payments on it right? What are my options on buying the house I know nothing about buying a foreclosed home and what fees or whatever are involved. We know what is wrong with the home and the ins and outs of it so there is not any thing there to scare us away from biding on it right now. Is there a way I can find out who owns the house and contact them? Please let me know what my options are here. Thanks
If it’s already been through foreclosure, there is not much you can do except buy it from the bank. Usually the bank will hire a broker or listing agent to sell the home and you just need to contact that person to make the bank an offer.
I would would not mind buying it from the bank, I mean I was in the process before anyways, How do i do this? I have a Realtor does he have anything to do with this now? How do I find out who the bank is and how do I buy it from the bank> Does this happen?
At this point it’s up to you if you want to use your realtor. I personally have found that listing agents like “double commissions” . Meaning if you don’t bring a realtor, they get 6% instead of 3%. If you were a listing agent, what percent would you want and if there were multiple offers with the same price, would you be swayed at all to take an offer that gave you more money doing the same amount of work, if you catch my drift….
But yes, you can use a realtor because the bank will be paying out a commission anyway. There are a few ways to find out who the listing agent is because that would be the next step. Usually the banks use the same one for each area, so ask them first, if they will tell you. Second, this requires some work, but you have to look for listings in your area with a sign in the front yard, but no lock box on the door yet. Third, you can start asking real estate agents, some of them know. Sometimes you can find them advertising in the local paper. They are usually a seasoned agent. Once you’ve identified the listing agent, you can submit an offer to him and he will submit it to the bank. They will then either accept or reject your offer. You want to hurry because you don’t want this to hit the MLS or else it’s game on at this point.
So this is what happened. we found a home we like, put an offer, accepted and ready for inspection late this week. on the weekend i saw the house we are trying to purchase on auction for foreclosure purposes thru a bank vs. the home owner. this auction is set for this weekend. we called our realtors and she called the home owners realtor and she said that the bank gave the owners an extension to sell the house but i guess the bank forgot to delete from auction going into the newspaper.
1. What is happening?
2. Can we re-nogotiate a price?
3. bank is asking for deposit on auction for $23,000, is that the money that the owners owe the bank?
4. if we decide to renegotiate and the owners say no, will the bank take their home?
5. what are the homeowners options now and what about ours?
6. are we better off buying it through the auction, we might buy it for cheaper now!?
Any help is greatly appreciated!
I am currently the high bidder on a foreclosure sale of a second mortgage. I didn’t realize there was a senior mortgage until today. I am not going to be able to pay off both and just found out that the first mortgage company has set a date for a foreclosure as well on Oct 29th. Do i default on my bid, bid against myself until the first mortgage goes through, or fulfil my bid on the second and try to work something out on the lender of the first. I need help asap. The final bid is mine, if it is not upset in the next two day.
Thanks.
Hmmm. I’m in CA. I don’t know the laws in NC, but I had the winning bid at an auction a couple of weeks ago (and like you was unaware of the senior lien). I discovered that defaulting on a bid at public auction here carries a fine ($10K) and possible jail time (1 year). So I didn’t see that as an option.
If you receive title to the property, you should be able to bring the 1st current by contacting the lender and making payments. They may not exercise the “due on sale” clause. The mortgage holder on my property won’t give me any info on the loan because it is in “litigation”. I’ve hired a RE attorney to help with all of this, but he’s in China ’til Monday!
Best of Luck & keep me posted.
First of all do your due diligence!
Anytime you look up mortgages under the person’s name on your county website, (Counties usually have 2 or 3; 1 for property appraise 2 for tax information 3 clerk’s site for public recordings)
You will find on the mortgage agreement on the first page and usually all the rest a small square line or box where it will state second mortgage
BE AWARE!!!!!!
Second is wiped out at 1st liens auction and all else except county taxes & possibly state taxes, but even IRS judgements are swept at the steps
If the 1st is foreclosing and you want to keep the house, you can short the second and take over the first
Sincerely,
Dan the Man! in NE Florida
In Fl you have to have 5% of the bid the day of the auction and the rest by the next day at 4pm. All counties are different. Know the rules and play by them.
CAVEAT EMPTOR! Buyer beware
Hello all, any help would be greatly appreciated.
I have a good friend who is trying to purchase a foreclosed home- and it has become a nightmare.
She was the high bidder, and has handed over a $21k deposit.
She wasn’t allowed to enter the home because there is an occupant who will not cooperate inside (the home owner).
She cannot find a mortgage that will approve her because they all require an interior inspection, which cannot be done because the resident will not allow it, CT law protects him.
She cannot have him evicted because she doesn’t own the home- but is responsible for evicting the occupant when she finally does.
What can we do!?
She will be paying $6400 in back taxes for this home, and will have to spend much more on repairs on top of all this mess.
thank you
-fernando
Offer them cash to move and even go as far as helping them move. Hire a moving company or rent a Uhaul for the weekend. The biggest thing here is they have no place to go. Help them find a place to move into. Offer to pay the deposit and 1st months rent if you need to (which is the cash you planned to give them anyway). Yes this is a pain, but in the long run, it’s usually easier and a lot faster.