buying a foreclosure at auction

[slag]

The mortage company bought the home for $198k and they were the only bidder. The mortage owed according to public record was $153k. I also learned, perhaps incorrectly, at the auction from a neighbor of the deceased that she had a reverse mortage of $412k on the place as well. I think I've all but lost interest in the property unless I could get it for around $100k.

 

[Uppsala9496]

Once it gets listed and sits there for a month with no activity, they will start dropping the price. Problem is it sounds like the bank lost a lot of money on the home so they may hold out to recoup more.
Good opportunity to go see the inside of the place now. Offer the $100k. Nothing to lose by doing so.

 

[cabri]

The mortgage company bought the home for $198k and they were the only bidder. The mortgage owed according to public record was $153k. I also learned, perhaps incorrectly, at the auction from a neighbor of the deceased that she had a reverse mortgage of $412k on the place as well. I think I've all but lost interest in the property unless I could get it for around $100k.

Reverse of 412K or 41.2K

153K + 41K comes close to the 198K

Once it gets listed and sits there for a month with no activity, they will start dropping the price. Problem is it sounds like the bank lost a lot of money on the home so they may hold out to recoup more.
Good opportunity to go see the inside of the place now. Offer the $100k. Nothing to lose by doing so.

1) Get a look inside now that the ownership access has been cleared up.
2) As suggested above; ping the mortgage company every couple of months with your offer if you still feel that you want the place and have no rush to obtain it.

 

[DrPizza]

I would think that getting a house that's been appraised at 285k for only 100k, just because it's a foreclosure is a little too optimistic - unless there are some major problems that need to be repaired.

 

[Greenman]

The mortage company bought the home for $198k and they were the only bidder. The mortage owed according to public record was $153k. I also learned, perhaps incorrectly, at the auction from a neighbor of the deceased that she had a reverse mortage of $412k on the place as well. I think I've all but lost interest in the property unless I could get it for around $100k.

I'm confused. If the house was a foreclosure the mortgage holder already owned it, why would they buy it from themselves?

 

[slag]

I'm confused. If the house was a foreclosure the mortgage holder already owned it, why would they buy it from themselves?

Homeowner passed away but everything was still in their name. They hold the foreclosure auction as part of the process of legally gaining ownership of it.

 

[NetWareHead]

Try your luck on gaining access to the place. These auction homes are not always maintained or even secured. My electrician bought his home this way and by luck found a window that was unlocked. Entered the place and did his own inspection. Try every window and door. Unfortunately someone was there before him: copper thieves and made off with the 4 inch copper waste stack and whatever other easily accessible plumbing was there. Bring a flashlight.

 

[Fanatical Meat]

I would think that getting a house that's been appraised at 285k for only 100k, just because it's a foreclosure is a little too optimistic - unless there are some major problems that need to be repaired.

^^this, we bought a short sale and yes it was a discount but like may 6-8k off it's value, which at the time was a few percent off its total value. Getting 60% off sounds too good to be true. Banks do make odd decisions about value so maybe its possible. If you like the property do your best to avoid auction because from my experience there will be plenty of people who have far more experience and funding than you. For example you'll always lose to a no inspection cash (like I'll transfer the funds to you no loan involved) buyer.

 

[slag]

This is an old thread. Good information, but I really can't believe someone is advocating breaking and entering to view the house.

 

[Fanatical Meat]

This is an old thread. Good information, but I really can't believe someone is advocating breaking and entering to view the house.

Aw crap I was snookered. How did it work out?

If the door/window is open you're not breaking but yes trespassing isn't a good idea

 

[NetWareHead]

This is an old thread. Good information, but I really can't believe someone is advocating breaking and entering to view the house.

The rare chance to inspect the house is a priceless opportunity not normally granted to an auction buyer. Its an unoccupied bank owned property and hundreds of thousands of dollars are at stake here.

 

[slag]

Aw crap I was snookered. How did it work out?

If the door/window is open you're not breaking but yes trespassing isn't a good idea

We ended up passing and buying a home inside the city limits. Worked out great. Originally when we looked at the place we didn't know I had cancer and with that info a few weeks later, there was no way we were going to try to take on a fixer upper not knowing how the future would pan out for me.