Manchvegas, NH · Member since 2014 · 137 posts · 9 votes
my partner told me to find out how much is on the mortgage because i am going to a foreclosure auction on monday. i am registered to a website that gives all the auction dates and where it is at and the attorney office etc.
i dont think it tells me where how much is on the mortgage though.
and why would it matter how much is on the mortgage for a foreclosure? i thought the bank is just trying to make back whatever they can at this point
Rental Property Investor · Arlington, TX · Member since 2012 · 788 posts · 640 votes
11y
@Account Closed
Recommend going to the auction and observing before bidding. You can calculate min bid amount by putting original loan amount into a mortgage calculator with assumptions of a 30 year note and interest of 7-8%. This will give you a general note balance. I have been fortunate at buying at Trustee Auctions and would encourage you to go and bid. Some banks are placing minimum bids below note balance. I enjoy the fact that I wake up at 5 the day of auction view 8-12 properties, attend auction and know within minutes if I am the new owner of another property. This all takes place before noon. Make sure you perform your due diligence. Best of Luck!
Manchvegas, NH · Member since 2014 · 137 posts · 9 votes
11y
it says the "original mortgage amount" is 191,920. would that be what is left on the mortgage? i thought that was telling me what the homeowner bought it for
Investor/Accountant/Builder · Meno, OK · Member since 2014 · 1k+ posts · 918 votes
11y
it does not matter what the mortgage is, bid what you think the house is worth to,you. The bank will bid to get back what they are owed. Or at least a major part of the loan.
maybe because in this case the house could be worth 240k and the bank still wants 192k? maybe its not worth the time going to this auction? not sure....
Investor/Accountant/Builder · Meno, OK · Member since 2014 · 1k+ posts · 918 votes
11y
is have not had any luck going to sheriff sales(foreclosure auctions). The banks are usually owed more than I would buy the distressed property. I don't waste my time.
Investor/Accountant/Builder · Meno, OK · Member since 2014 · 1k+ posts · 918 votes
11y
better solution for what. I have bought many forclosed houses, all for what I was wiling to pay after the bank forclosed and had realtors list them. Www.realtor.com. I also find deals in various places. Off market stuff, realtors, driving around, they come to me.
when i tell a realtor that i am looking for a deal that needs alot of work they send me 70 listings of foreclosed houses in my city. how am i supposed to choose which ones i like and which ones i dont? that would take me weeks to analyze them all wouldnt it?
Investor/Accountant/Builder · Meno, OK · Member since 2014 · 1k+ posts · 918 votes
11y
I would spend a few minutes looking at each property on realtor.com. First Analyze:
What is in the right area
Then what is in your price range
Then look at each of the sets of pictures for what you might be interested in.
You should be able to narrow the list down to a handful in a short time. Then drive by the short list and select a few that you want the realtor to show you. Then after looking inside a few of them, make a couple or few offers and get your checkbook ready.
Rental Property Investor · Arlington, TX · Member since 2012 · 788 posts · 640 votes
11y
@Account Closed
Recommend going to the auction and observing before bidding. You can calculate min bid amount by putting original loan amount into a mortgage calculator with assumptions of a 30 year note and interest of 7-8%. This will give you a general note balance. I have been fortunate at buying at Trustee Auctions and would encourage you to go and bid. Some banks are placing minimum bids below note balance. I enjoy the fact that I wake up at 5 the day of auction view 8-12 properties, attend auction and know within minutes if I am the new owner of another property. This all takes place before noon. Make sure you perform your due diligence. Best of Luck!
Flipper/Rehabber · Wichita, KS · Member since 2014 · 62 posts · 39 votes
11y
Gary, first off I would select a few areas, and determine what price range you would like to invest. You need to start by narrowing that down. I try to flip homes within a 15-20 minute drive. I also only target a few areas and in the $60-130 price range. It takes time to learn how to recognize a deal so getting to know the area and having your realtor run comps is very important. Eventually you will recognize a potential good deal on your own simply by spending time looking online and physically visiting homes in the areas you would like to invest.
Another thought is determining just how much rehab you are willing to do. Are you willing to deal with mold, foundation, roofs, and other more serious issues or are you just wanting to update a home? That in itself will possibly eliminate some.
Good luck! Having a good real estate agent is invaluable. Also, get a subscription to www.foreclosure.com. I see deals sometimes before my agent does.