Investor · Yukon, OK · Member since 2017 · 20 posts · 0 votes
I live in a community of mobile homes that are generally on 1 acre lots or larger. Discovered neighbor is being foreclosed on and I'm guessing they have 30 days to vacate. The 30 days are up on the 11th and the property is going on Auction.com. I currently live in a mobile home but it is only a single wide. This property is a double wide and about twice the square footage. I would like to rent the property I am living in and move up to the double wide. Is there a method to get this property at a wholesale price? It supposedly sold for $115,000 3 years ago, but I believe it is going to sell for far less. I read a few posts that bidding on Auction.com was a waste of time and there are no deals. Do I just have to be patient until a realtor lists this property? How would I find out more info? It is owned by Loan Depot the bank.
Hello Kieran. I am a Concierge Representative in Nevada & Arizona. Dan Rosenberger has the right answers for you regarding the online auction process. This particular property is exclusive to auction.com so you won't see it listed with a Realtor anytime soon. Pre-auction bidding is a great feature & allows you to bid prior to the online auction starting. The Seller will consider all bids during this time period. Pre-auction bidding will end 3 days prior to the start of the online auction.
If it is available for pre-auction bid, they will consider those bids first. If they get an acceptable bid then, the property is sold without going through the normal bidding process of a few days. If it is not pre-auction bid, then pay attention to the deadlines. Watch some other properties to get a better understanding of their sales process.
If the mobile home is on permanent foundation and FHA, then the government guarantees the loan. In these types of cases, it's usually a no go. You'll have to find out what's owed on the property in order to proceed. The other option is to just wait for it to go to auction. In most cases if there's too much owed on the property, the lender will buy it back. Looking at the numbers, if it was only bought 3 years ago then there may be a bit owed on the property. Hope this helps. Good luck!
I looked thru the court records. It has already sold at the Sheriff's Sale to the bank. There is some rule you have to bid 2/3 of appraised value and that is what the bank did. The bank is loandepot.com. I am not familiar with their practices but I believe this is either a FHA/VA or some other government insured loan. The bank definitely owns it. It may be that the previous owners just haven't been evicted by the Sheriff? They are still living there just like they have for the past 2 years I lived down the street from them. I was debating on paying them a visit and asking if they could tell me more about the property. link to auction: https://www.auction.com/details/12313-sw-27th-st-y...
I basically live in a dinky single wide trailer and would love to have some more room for a bargain price. I'm sure someone would rent my trailer. I am just not sure if auction.com is the way to get there? I also am not sure what a fair price is? The home may or may not be in good condition. It is hard to tell. Outside looks acceptable.
If you buy it, you will get to talk to them. Why not go there and ask them about the house. Some people are friendly, some not. Hey, it looks like this house is for sale and I wanted to find out more about it...
Based on prior value, the bank could be looking for 70k+ for that house.
If you want the property, use the pre auction bid to bid what you think it is worth. It could ask you to raise your number up to 5 times, so start a few hundred lower than your final number.
Will the bank stick to that value? Depending on condition I believe it may be worth as little as $40,000. Is it likely they will remain there after the sale and it will require me to evict them?
Determine what you think it is worth to you and don't go above that number. Also note that it is a cash only auction with no financing available. It is not unusual for a property to go through several auction cycles. It might take some patience. The bank's asset manager might realize after several attempts if they are above market value for a bank owned property. Look at some other properties on auction.com. Some of the bids are real people, some are "counter bids" otherwise known as shill bids. If it is a counterbid, it will be identifed as such.
The occupants living there might be the people who lost the house to foreclosure and they might be tenants. Each situation is different. A conversation with them might give you an idea whether or not eviction will be necessary.
What is the process typically like once you become the owner and you still have occupants? Do they typically vacate when you give notice? Is there a certain cost that you should anticipate to get them out?
If the occupant is a previous owner, they probably know that their time is up, and they have been looking for another place to live. In some cases you might need to offer some assistance (cash for keys) to help the process along. If they are uncooperative, it might take an attorney to file, and possibly you to pay for moving and storage of their personal items. It rarely gets to that point, but it does happen once in a while.
If they are tenants, they might have rights to remain until their lease is expired. Of course they would need to pay rent during that time period. And you and the tenant could possibly come to an agreement for them to vacate early.
So get as much information as possible because the occupancy is definitely a factor in your bid amount.
Hello Kieran. I am a Concierge Representative in Nevada & Arizona. Dan Rosenberger has the right answers for you regarding the online auction process. This particular property is exclusive to auction.com so you won't see it listed with a Realtor anytime soon. Pre-auction bidding is a great feature & allows you to bid prior to the online auction starting. The Seller will consider all bids during this time period. Pre-auction bidding will end 3 days prior to the start of the online auction.
I went and made contact with the former owner. The information I was able to obtain was they tried to come and change the locks but didn't. Owner seems to be in denial that he no longer owns the property. Told me he attempted to send $12,000 payment but the payment was rejected. I told him the bank owns the property and he agreed. He told me they had a lawyer fighting the foreclosure. Not sure what to think for my bid with a situation like this? Didn't get to see inside but I'm guessing it's real dirty.
So knowing what you know, you could bid a low number that would factor in condition of the home and a potential difficult and/or costly process of eviction. In all probability some asset manager will see that it sold for 120k in 2014 and has a Zillow value of 188k. So the asset manager will probably not take anything less than a bid in the 70s or 80s.
So this one might not work out. But there are several properties in your county showing up in hudhomestore.com and auction.com. So use what you are learning from this process, considering other properties. Since you will be moving into the property you purchase, you would have owner-occupant bidding priority for a HUD Home or other government home sale.
For the price I would bid I was going off of another HUD home nearby that was very similar. It sold for $45,500. I think I would be willing to pay as much as $50,000 but maybe no more.
I was digging a little more on the county recorder website and there has been no new recording of the deed to the bank. What does that mean? Maybe the occupant still owns it?
There are lots of mobile homes on similar pieces of land in this area. I could always wait for the next one to pop up.
Based on the information so far, my guess is that this property will eventually become a HUD home.
Often , banks after foreclosing will lost their inventory on sites such as Auction.com in an attempt to sell them quickly. There is no real need for them to sell at a discount as they have the option to collect on the FHA mortgage insurance. Eventually this will happen and the property will be transferred to HUD
Once transferred, Hud will remove the tenants, clear up any title issues and market the property for sale. This process could take months or years. Keep an eye out for the property becoming vacant and the HUD no trespassing signs in the windows.
Once listed, the property will be on hud homestore.com and be available first to owner occupants. My experience has shown that you will get a much better price at this point versus Auction.com
Based on the information so far, my guess is that this property will eventually become a HUD home.
Often , banks after foreclosing will lost their inventory on sites such as Auction.com in an attempt to sell them quickly. There is no real need for them to sell at a discount as they have the option to collect on the FHA mortgage insurance. Eventually this will happen and the property will be transferred to HUD
Once transferred, Hud will remove the tenants, clear up any title issues and market the property for sale. This process could take months or years. Keep an eye out for the property becoming vacant and the HUD no trespassing signs in the windows.
Once listed, the property will be on hud homestore.com and be available first to owner occupants. My experience has shown that you will get a much better price at this point versus Auction.com
That was exactly the advice I was looking for. So the good bargains happen once it hits HUD? Will HUD give me preference since I plan on living in the property? I currently own one investor property in Texas and I would be renting my house to acquire something with more room. I got a feeling these mobile home properties are just something you keep because nobody will loan money on them.
Yes, you can buy as an owner occupant no matter how many properties you own as long as you intend to occupy as your principal residence for 1 year
Will it initially be a good deal ? Maybe. HUD will typically list the property at 100% of the appraised value assigned by the appraiser. If no acceptable buyers are found after +-30 days, there will be a price drop
Boy was I wrong. This property sold for $90,000. I didn't know, but the lender (loandepot) uses Auction.com to list the property and attempt to obtain 80% of the original loan. If they do not get 80% after a year the property reverts to HUD. The timeline is totally up to the lender though. Auction.com won't tell you the reserve price, but if it has a reserve you can guarantee it is right around 80%.