Bank Recourse in Auctions? - Missouri

[Account Closed]

Hello BP Community!

I am looking to purchase a home through auction for my family and I and the details are as follows:

• Wells holds the lien and there are no junior or other outstanding liens.
• It was established in 2011 at 175k and the property owner stopped paying over the summer so I think it's in the 161k range for what's left on the mortgage.
• In talking to Wells they said that they were not listing the property for auction but the owner was... yet Auction.com lists this as a foreclosure property.

My father would partner with me on the cash for this deal until I can grab my traditional financing but he is worried about being on the hook for more than we expect.

If I have checked with my recorder of deeds for any extra liens or overdue taxes, sewer bills, etc, can I be on the hook for anything more than my bid price if I win?  My father is nervous that if we win the bid at say 150k, the bank may come after us for the last 11k on the loan plus any legal fees and penalties.  Could this happen?

My thinking is that the bank will have someone there and won't let it go for less than their break-even point on this property.  Can anyone clear up this question for us?

And please let me know what experience/credentials you have as this would be important to my father.

Thanks to all!

-Bob

[Wayne Brooks]

@Account Closed  The problem here is, we don't know who lists  or why the property is listed on auction.com.  I suspect there is some misunderstanding on that issue.  Auction .com generally has 4 different scenarios for listed properties on their site.

1) REO

2) Trustee sale where auction.com is actually acting as the trustee

3) Other foreclosure auctions where they are not involved at all....I've seen these more frequently in the last year here where all our foreclosure auctions are judicial, and done online thru the county clerk of court sites, using a third party platform (not auction.com).  I don't know if these third parties pay auction.com a fee to publicize them, or they just do it to drive extra traffic to their website, even though they aren't involved in the auction process.

4) Some servicers such as Nationstar will require some short sale properties to be placed on auction.com after they receive a contract, for "price verification" purposes.  The high bidder in these cases is simply put "into contract" on a short sale with all the baggage that entails.

Very rarely will an individual owner place their property on auction.com, this my doubts that's what's going on here.