Foreclosure Auction questions in San Bernardino County

[Danielle Shaw]

Hi there! We currently own a STR and have always looked at this one unkept (that's being nice) house on our street thinking it had so much potential. Well now it is up for Auction this July.

I’m totally new to foreclosures and auctions and could be wrong. However I think we could potentially get a killer deal on this house because we are so familiar with the neighborhood but others may not be. Also the house looks like it has somewhat scary owners/tenants that most may not want to deal with. We would plan on an extensive rehab.

Auction details

est resale value - Not Available

est credit bid - Undisclosed

opening bid - $70,000

est debt - $261,676

I think Conservative ARV $275-$300

I have 2 questions...

1. Is there a way to determine what you think the property may end up going for (a ballpark)

2. How difficult is it to get tenants out, assuming the worst. Because I think that may very well happen with this house.

[Ron S.]

Originally posted by @Danielle Shaw:

Thank you for your response Ron.  Wow, I would predict no one in there right mind would pay $261k for this property it is worth $150 MAX in the state it is in.  Hmmm interesting and very unfortunate.

The lender will do a 2055 (drive by) appraisal. if it's worth less than total debt, they will usually go with FMV (Fair Market Value) at the foreclosure sale. The drive by will only show value compared to similar homes, not THIS home, since they can't do an interior inspection to know THIS home's value. Even if they take it back for total debt, they can still only get what someone will pay so, they will sell it for FMV. If FMV is $150, eventually, that is what the lender will sell it for.