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Foreclosures
Posted on 7/30/10 at 3:47 pm
Posted on 7/30/10 at 3:47 pm
Has anyone here had any experience with sheriff auctions for foreclosed on homes?
I'm seriously looking into this as an option.
I went last week to witness the auction at the City Hall in BR to see the process. I know that you must have cash in had by the end of the day of the auction.
From what i saw this week, they start off listing the money owed (Writ), then they state what the property appraised for (if an apprasial was done)
Next they start out at 2/3 the apprasial value with the Plantiff (bank holding the mortgauge) bidding first (usually the 2/3 value). Then the bidding starts.
My question, is there any reason for the bank to go above the write value when thay are counter bidding you? From my understanging, is once they get the property up to the amount owen, the rest of the money goes to the foreclosed owner. Also, someone said that the listed Writ amount also includes the fees to serve papers, the homeowners late fees and penaltities ect. Will the bank stop bidding below the writ amount to recoup actual purchase fees or will they go all the way to the writ amount?
Any out there with experience?
I'm seriously looking into this as an option.
I went last week to witness the auction at the City Hall in BR to see the process. I know that you must have cash in had by the end of the day of the auction.
From what i saw this week, they start off listing the money owed (Writ), then they state what the property appraised for (if an apprasial was done)
Next they start out at 2/3 the apprasial value with the Plantiff (bank holding the mortgauge) bidding first (usually the 2/3 value). Then the bidding starts.
My question, is there any reason for the bank to go above the write value when thay are counter bidding you? From my understanging, is once they get the property up to the amount owen, the rest of the money goes to the foreclosed owner. Also, someone said that the listed Writ amount also includes the fees to serve papers, the homeowners late fees and penaltities ect. Will the bank stop bidding below the writ amount to recoup actual purchase fees or will they go all the way to the writ amount?
Any out there with experience?
4
Posted on 7/30/10 at 4:01 pm to tigeraddict
Man, that process is quite different than the trustee auctions here in King County (which I have a lot of experience with).
Posted on 7/30/10 at 4:14 pm to tigeraddict
I have personally witnessed at auction where the guy had a $125,000 house. He owed $40,000 when the bank foreclosed. Bidding started at $75,000 and sold for $90,000. The bank kept all the profit.
Posted on 7/31/10 at 8:33 am to tigeraddict
A have no experience with this ,but I don`t think the bank will be giving money to anyone that has been foreclosed on.
Posted on 7/31/10 at 3:11 pm to tigeraddict
I bought a few at EBR sheriff's auction.
I have seen homes go WAY too high.
I find the deals are on the really low end, 3 bedroom 1 bath homes and that the bank's rep aggresively bids it up.
I seriously doubt the foreclosed owner sees a dime.
I have seen homes go WAY too high.
I find the deals are on the really low end, 3 bedroom 1 bath homes and that the bank's rep aggresively bids it up.
I seriously doubt the foreclosed owner sees a dime.
Posted on 7/31/10 at 5:54 pm to Tiger JJ
In TN the bank bids what they are owed (including atty fees,taxes that have been paid on the property, force placed insurance, any expenses incurred on that property prior to foreclosure). If they are outbid by an individual the individual will then own the property. If not, the bank gets the property back then can negotiate price with an interested buyer. The bank cannot sell the property or make deals unless they own the property. This would take place by either foreclosure or deed in lieu of foreclosure.
This post was edited on 7/31/10 at 6:02 pm
Posted on 7/31/10 at 7:17 pm to East TN Tiger
quote:
In TN the bank bids what they are owed
By law? You're saying they aren't allowed to bid less than they are owed? Seriously? Are you sure?
Posted on 7/31/10 at 9:15 pm to Tiger JJ
No, not by law - It's just the norm where I live. Our property values have decreased, but not like other areas of the country. Why would a bank bid lower than what's owed if they think they can sell it for the amount owed or more?
I could see the banks initial bid being less than owed if in California, Florida, Nevada, etc. as these places have seen a major depreciation in property values and it's very unlikely that they would recoup what's owed. I'm not in Louisiana but I didn't think property values had decreased this much there.
I could see the banks initial bid being less than owed if in California, Florida, Nevada, etc. as these places have seen a major depreciation in property values and it's very unlikely that they would recoup what's owed. I'm not in Louisiana but I didn't think property values had decreased this much there.
Posted on 8/1/10 at 1:26 pm to East TN Tiger
quote:
No, not by law - It's just the norm where I live. Our property values have decreased, but not like other areas of the country. Why would a bank bid lower than what's owed if they think they can sell it for the amount owed or more?
One reason would be just to draw bidders. Another would be to avoid the costly and drawn-out REO process. At auction, there are no realty fees. But REO you might have to pay 3-6% in fees.
Posted on 8/1/10 at 7:57 pm to rmc
quote:
rmc
Thanks for the links.
Made two trips to check on the property this weekend. One Friday night to see if there were any lights on. None, not even the doorbell light were seen, so i came back Saturday to see what was inside.
EDIT: Also of note, I can do most of the Plumbing/HVAC/Electrical fixes myself or through close contacts
Could see through the back door that the appliances were removed (Range/stove, dishwasher, kitchen sink), but ceiling fan was still in the living room. Master bath was still intack plumping wise.
I called both the Clerk of Court (which told me the owner paid $166,900 for the property in 2004) and then I called the Sheriff's office.
From what I read in the articles you linked, i have two options.
#1 - outbid the bank at auction time
#2 - let the bank win the bid then try to contact them afterwards and make an offer before it goes to a real estate agent.
So tell me if I have it right then. Two other houses in same Neighborhood (same street, one next door) listing $199,800 and $204,500.
Writ is listed as $159K and some change. I take it the bank will bid the $159K value to get the house. With the work needed inside, i don't want to offer that much. So i assume i should make them an offer after the bid for $135K-$145K. Do you think they will go for the offer?
BR Foreclosures article
quote:
Foreclosure activity up 47% in B.R. in 2010 Five Louisiana metropolitan areas, including Baton Rouge, posted year-to-year increases in foreclosure activity during the first half of 2010, according to a national study released today. In the Capital Region, 1,817 properties were targeted by a foreclosure-related notice during the first half of 2010, says RealtyTrac. That's up 46.9% from a year ago. During the first half of 2010, one out of every 180 homes received a notice. Metro Baton Rouge ranked 150th out of 206 metro areas for foreclosures.
There are alot of houses on the sale market, alot over 120 days.
I looks to be a buyers market, but have you had any experiences with banks offering after auction?
This post was edited on 8/1/10 at 8:00 pm
Posted on 8/2/10 at 10:01 am to tigeraddict
quote:
I take it the bank will bid the $159K value to get the house
Is there any way for you to know this? Can you get the last year or so of auction history and figure out what % of face value has been common? When is the bank's bid amount (aka the "drop bid" or "minimum bid") typically announced? Is it not until right at the point of sale?
Why do you think the bank would be willing to take a discount AFTER the auction? Why not contact them now and offer to do a short sale?
Posted on 8/2/10 at 10:14 am to rmc
quote:
Not really. The attorney for the bank sends bidders and they are given an amount. Some will bid the minimum and see if anyone else bids. Some just bid the total amount due. They have a hard stopping point which is usually principal + interest + court costs + sheriff's cost/commission + attorney's fees.
How exactly does this differ from a "trustee sale", which is what we have here in King County. Sheriff's sales here, as I understand it, are revocable and are generally over small amounts. e.g. You might see a $5K debt go to sheriff sale, but it's dangerous to deal in that because the debtor has like 6 months to pay it off, whereas the trustee sale is final. You take ownership the second the auction is over.
Posted on 8/2/10 at 10:27 am to rmc
quote:
You could try a short sale as stated earlier. The problem is that they take a while, and the owners and the bank have to agree.
Presumably, the owners would agree in this situation!
Posted on 8/2/10 at 10:37 am to rmc
quote:
Yeah, you are right. You could try a short sale as stated earlier. The problem is that they take a while, and the owners and the bank have to agree.
Problem is the owner has already moved out, and i have no idea where they have moved. The house is vacant (no electrical meter)
quote:
159k is the principal amount of the writ. EBRSO does not include the interest, costs or attorney's fees in the writ amount, and rightfully so, they cannot calculate them - they have to request them from the attorney.
If the bank indeed goes higher then the writ, then I will be stopping efor they get to that point. With the work i can physically see plus the risk of an "as is bid" and not being able to do an indebth check of the housethe house is not worth $160K+
But factoring in the bank having to pay to fix the house up and hire a real estate agent and have the house sit on the market for awhile, i'm hoping they will accept an offer after the bid. If not, then the house is not for me.
Thank again for your input
Posted on 8/2/10 at 10:46 am to Tiger JJ
quote:
You might see a $5K debt go to sheriff sale, but it's dangerous to deal in that because the debtor has like 6 months to pay it off
That is very similar to Texas's Tax Sale process, which is facilitated by a Sheriff. When people don't pay taxes the Sheriff auctions a lien for the delinquent amount or higher.
Posted on 8/4/10 at 12:38 pm to I Love Bama
Just remember, after a foreclosure is sold, the original owner has up to a year to come back and get the house back...BE FORWARNED..
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