Updated over 7 years ago on . Most recent reply
Set to Close - Then Home Went to Foreclosure
Hi All,
My husband and I were under contract on a Virginia home -inspection, appraisal, financing all ready to purchase- then found out that the seller's mortgages + judgments came to more than our purchase price of $76k. Seller owes $33k + $37k between bank and mortgage service company, and $16k (2017) + $1.5k (2011) + $9k (2007) in other judgments. Total debts come to about $97k, the appraisal came in at $120k, but comparable sales in this area are $85k at best. There is the potential of a judgment being released but the title processor says it'd take a miracle.
My realtor is not familiar with the foreclosure process and neither am I - should we try for short sale and how do you go about it? I am anxious to do all that I can because this home would be great for us to live in long-term, with the ability to rent out the basement. There was also a fire in the home less than 3 years ago, so all the major ticket items have been replaced already. Trustee sale date is a week out from now and I'm not sure if there is anything else we can do to avoid it going to foreclosure.
If we are too late for short sale, what would be the best course of action at auction? I'm assuming there is a reserve min bid, any idea what that likely would be? And would an accepted bid price include these judgments or are we bidding on a purchase price for the home and acquiring all that debt afterwards?? We have the 10% necessary for a deposit, and our lender/title company has already said they could close for us in the 15 day window.
What else can we do to win this home??
Most Popular Reply
If the sellers file BK those judgment liens are not affected.
And if the bank is owed $70k on the lien being foreclosed then that is essentially the number. I wouldn't bother with any other strategies as they'll actually cost more.
One thing I would be sure of before bidding is making sure my realtor doesn't claim a commission will be due.
- Tom Gimer
