I am observing my first foreclosure auction on Tuesday. No bidding for me! I also have several questions on the liens of a property listed for auction by the mortgage company.
Both zillow and auction.com list the starting bid as $330,000. Could this be accurate considering "zestimates" and the like?
The trustee sale document lists the Mortgagee as the one foreclosing the property. Original loan amout of $323,200. The mortgage was recorded on 8/26/2003. The county records show a mechanics lien filed on 9/6/2003 for $63,000 for the pool. There was also a lien filled from the HOA on 7/14/2013 for $1,600.
My questions are can one ask the Trustee before the auction if this starting bid is correct? Assuming this mortgage is almost 13 years old, could the $330,000 amount satisfy the remaining mortgage amount, the pool lien and the HOA lien? If not, what happens with the 2 liens when someone buys this property for the mortgage foreclosure. Meaning who is liable and how are they handled then. This is in Texas. Thank you in advance!
i've heard so many people 'winning' houses on auction dot com only the hear even a year later their 5k or 10k 'deposit' is being held meanwhile the house they 'won' keeps relisting for 'auction' every few weeks for years!
As an active Trustee buyer - starting bid is very inaccurate and usually only advertised to get people to show up and bid. The mechanic's lien will be wiped out but the HOA lien may stay with property. Trustee's will usually not give you any legal advise. I would definitely attend the auction and take notes.
Neil, it is a courthouse auction. Auction.com is only advertising it and their listing says to go to the auction Tue. to bid on it.
Auction.com is notorious for step bidding their trustee sales. Ignore the minimum bid and just run your numbers. The mechanics lien will generally stay if it has been perfected over time. Check the records. Sometimes you can negotiate a decent discount on payoff to the lienholder after acquiring the property. HOA lien status will be subject to state law.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!