Foreclosure Home Been to Auction Twice - Possible to Purchase...

10 Replies

Hello, I currently own my home with my wife in Maryland. The value of the home is between 350-360k and we owe about 280 on the mortgage. We live in one of the most desired, if not the most desired counties in MD.

When we purchased the home I had a salaried job in Baltimore, and my wife still does. Since then, I have become self employed and I own a business in Harrisburg and York PA as well as one in Baltimore. 

We are trying to mitigate my commute a bit by moving closer to the PA line and we found a beautiful home that we fell in love with quickly. The house has gone through auction twice most recently September 15th-18th with a starting bid of 276. Its original auction was in the 300's. It has been listed for 208 days and has been bank owned since 2013.

There is a new auction scheduled for December with an opening bid of 170k. 

I think this actually is detrimental to my situation as my house needs to be sold in order to buy this new home.

Am I able to purchase a foreclosured home before the auction begins if an agreed to price comes about? 

If I bid on the house and I win, but I am unable to sell my house, what happens then?

We have some cash, not too much right now, so we would really depend on the cash from the home sale to purchase the new house.

Any thoughts, suggestions, or insight to this situation?

Thanks in advance!!

@Constantine Kapothanasis can you clarify what auction you are referring to? Is this an online auction like Hubzu or Auction.com or the actual county foreclosure auction? If it's the county foreclosure auction you generally have to have the funds available right then and there (i.e. cash). If it's one of the online auction platforms you can have a financing contingency placed in your bid e.g. 21 days to get financing but sometimes they also require cash only bids. It's property specific. 

I hope it helps and good luck getting the house! 

I can help you.. I'm pretty sure you are talking about a property on Homesearch based on the property being up for auction twice and now being rescheduled until December. 

Call me and we'll chat.

Ray

305-866-3100

If you make them an offer high enough, likely quite a bit more than you're looking to pay, they'll likely take it.  But, they won't make them sale contingent upon selling your home, and will likely require a preapproval for any required financing.

Originally posted by @Marvin McTaw :

@Constantine Kapothanasis can you clarify what auction you are referring to? Is this an online auction like Hubzu or Auction.com or the actual county foreclosure auction? If it's the county foreclosure auction you generally have to have the funds available right then and there (i.e. cash). If it's one of the online auction platforms you can have a financing contingency placed in your bid e.g. 21 days to get financing but sometimes they also require cash only bids. It's property specific. 

I hope it helps and good luck getting the house! 

 Marvin it is for sale on Homesearch.com

Originally posted by @Ray Slack :

I can help you.. I'm pretty sure you are talking about a property on Homesearch based on the property being up for auction twice and now being rescheduled until December. 

Call me and we'll chat.

Ray

305-866-3100

 Ray, if you were able to pick the home I am talking about based on that little information I gave I am extremely impressed!

Originally posted by @Wayne Brooks :

If you make them an offer high enough, likely quite a bit more than you're looking to pay, they'll likely take it.  But, they won't make them sale contingent upon selling your home, and will likely require a preapproval for any required financing.

 When we looked at the house it was 276k and we were ready to put in an offer at 270.

Now that its rescheduled for auction at 143k I dont think we should put in an offer more than we were looking, honestly I am thinking 250k should be enough to get it out before auction.

Well, that's an irrelevant low ball teaser "starting bid" just to draw attention.  Their reserve is still unknown.

Originally posted by @Constantine Kapothanasis :
Originally posted by @Marvin McTaw:

@Constantine Kapothanasis can you clarify what auction you are referring to? Is this an online auction like Hubzu or Auction.com or the actual county foreclosure auction? If it's the county foreclosure auction you generally have to have the funds available right then and there (i.e. cash). If it's one of the online auction platforms you can have a financing contingency placed in your bid e.g. 21 days to get financing but sometimes they also require cash only bids. It's property specific. 

I hope it helps and good luck getting the house! 

 Marvin it is for sale on Homesearch.com

 I quickly checked out Homesearch.com and it seems to be most similar to Auction.com. Auctions on sites like these fail all the time and they simply re-start the auction. I would contact the listing agent and put in an offer. Since it's a home you're looking to live in I would recommend starting much closer to your "best and final" versus what you might see as a starting price on the auction. They generally do that to garner interest in the property i.e. "Look you may be able to get this house for this price!"

The agent may directly negotiate with you prior to the auction and they may not. It all depends on the specifics of the situation which you won't really know unless you actually speak with the agent or person handling the property. Worst case scenario, you can just bid in the auction in December. 

Good luck!

Originally posted by @Marvin McTaw :
Originally posted by @Constantine Kapothanasis:
Originally posted by @Marvin McTaw:

@Constantine Kapothanasis can you clarify what auction you are referring to? Is this an online auction like Hubzu or Auction.com or the actual county foreclosure auction? If it's the county foreclosure auction you generally have to have the funds available right then and there (i.e. cash). If it's one of the online auction platforms you can have a financing contingency placed in your bid e.g. 21 days to get financing but sometimes they also require cash only bids. It's property specific. 

I hope it helps and good luck getting the house! 

 Marvin it is for sale on Homesearch.com

 I quickly checked out Homesearch.com and it seems to be most similar to Auction.com. Auctions on sites like these fail all the time and they simply re-start the auction. I would contact the listing agent and put in an offer. Since it's a home you're looking to live in I would recommend starting much closer to your "best and final" versus what you might see as a starting price on the auction. They generally do that to garner interest in the property i.e. "Look you may be able to get this house for this price!"

The agent may directly negotiate with you prior to the auction and they may not. It all depends on the specifics of the situation which you won't really know unless you actually speak with the agent or person handling the property. Worst case scenario, you can just bid in the auction in December. 

Good luck!

 Marvin this is exactly what I ended up doing. The listing agent was helpful and essentially reiterated what has been said here. We are submitting an offer with a contingency of our house being sold, while keeping our fingers crossed knowing banks don't really ever accept that. We are hoping that the combination of how long the house has been bank owned (2013) how high we are offering, and the fact that our town's average listing time is one of the lowest in the country, they will accept it. We shall see!

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