I know there's been a bunch of posts on foreclosures and auctions, but the topic really interests me and scares me at the same time.
I understand that it's critical to do your due diligence before bidding, but I was wondering if I could get some more people's success/failure stories to see how the process works or has worked, more specifically.
For instance I was close to bidding on a couple properties. On one of them my realtor had visited the property and said it looked decent without any huge visible issues. I did a deed search on the county website, showing all the mortgage transactions and finally the sheriff sale. I also checked the county tax site for delinquent taxes. My one hesitation was that the bank had assumed the mortgage(s) at foreclosure for 230k, but the auction started at only 20k, and finished at 60k, with reserve not met.
Sorry for the short story but here's the punch line...Why would the bank bid so high then open so low? Does anyone understand what the bank is trying to do?
The bank simply BID the mortgage balance. Cost them NOTHING. The question is, "What is/was amount of Upset Bid. " Most mortgage holders will disclose this at the sale- often before. Since it didn't sell,you may wish to approach the bank to sell DIRECT, but prepare for long time to find anyone who understands.
@Joseph Ball where do the banks disclose the upset bid? Is that the highest bidder at the sheriff sale besides them? The problem is the ARV is probably only 110-120k, which is a ways from their 240k balance....
You walk up to their representative and ask. It's not a big secret
Was this a CA trustee sale?
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