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Buying Properties At The Auction

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Buying Properties At Auction – Watch Out!

Buying Properties At AuctionQuestion:  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Can we get this rescinded????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!!!! [Read more…] about Buying Properties At The Auction

Bank foreclosing on home – What will the bank typically bid at the sheriff’s sale?

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Question: A bank that is foreclosing on a home holds a first and a second mortgage. The first alone is more than the home is worth. What will the bank typically bid at the sheriff’s sale? Would it bid market price minus second mortgage lien, because the buyer would still have to be paid off?

Answer: – Typically the opening bid is the amount you owe plus foreclosure fees, back payments, etc. If someone bids at the foreclosure auction, then the highest bidder gets the property. If no one bids, the bank takes back the property and sells it through a real estate broker. If the bank does not get paid the full amount they are owed, they can 1099 you for the difference and count the loss as income to you so you have to pay taxes on it.

When a property is auctioned off by a lender and the lender receives more than what is owed on the note, what happens to those funds?

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Question: If your home foreclosed and you tried the short sale and it did not sell,then you give it back to the bank. when the bank sells it for more than you owed what happens to that part that is over the amount you owed?

Answer: – After the foreclosure auction, those funds go to pay off any junior lien holders. If there are no junior lien holders those funds “should” go to the homeowner because it’s legally theirs. It’s interesting that most homeowners have no idea that they are entitled to any excess funds from the sale of their home through foreclosure. There are literally millions of dollars that go unclaimed each year and the county does not take the initiative to notify the homeowner of those overages. There are lots of companies, specifically attorneys, who understand this process extremely well and assist homeowners in getting these monies back… for a certain fee of course. What you have to be careful about are those companies who prey on people who have no idea what’s going on and use that to their advantage.

So you basically have two options. Go get the money yourself, it’s yours, you’re entitled to it. Or pay someone to get your money for you that way you don’t have to worry about it and you can let a professional do it. Just make sure you know what amount you are entitled to, that way you know how much the company or individual is charging you for their expertise.

Liens on the home, (other than property tax or Federal) am I obligated to pay that lien?

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Question: If I buy a home at a foreclosure sale, and later determine there is another lien on the home, (other than property tax or Federal) am I obligated to pay that lien to obtain clear title?

Answer: – Yes, if the lien has seniority, you are responsible as the high bidder to pay off all liens to clear title. That’s why it’s so important to run a title report to make sure there are no liens on the property and to find out how many liens are on the property. I’ve heard of cases where individuals will bid on properties thinking they are a great deal and find out later it was the 2nd mortgage they were bidding on and they have to now payoff the first. Most lose their deposit and it goes back up for auction because they thought the opening bid was for the 1st mortgage. Hope that helps.

I WAS A WINNING BIDDER AT A TRUSTEE SALE, BUT IT WAS A SECOND LIEN. WHAT SHOULD I DO NEXT?

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Question: I WAS A WINNING BIDDER AT A TRUSTEE SALE, BUT IT WAS A SECOND LIEN. WHAT SHOULD I DO NEXT?

Answer: – Pray there is not a first mortgage or any back taxes you have to pay…Ha Ha. Hopefully you did your research prior to the foreclosure auction and found the property to be worth a great deal more than what the 1st was owed and what you paid for the 2nd. If not, you may want to think hard about an exit strategy. But assuming you did all your due diligence, as the winning bidder your state and county will determine when you need to come up with money to pay for the property. It ranges from state to state anywhere from 24 hours after the foreclosure auction to 30 days. If you can’t get the money within that time, you lose any money you may have had to put down. Then you may still have to wait to do anything to it if there is a redemption period in your state.