Foreclosure Auction questions in San Bernardino County

7 Replies

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.

based on what you wrote, it won't go for less than $261,676. If they are the senior lien holder, they will more than likely bid total debt and take it back into REO, rehab it (Maybe), evict tenants, and sell it on the open market by listing it with an agent.

It's a simple unlawful detainer (eviction). Simple in the sense you file a lawsuit and win. Getting them out will also be simple as the sheriff will "assist" them. Not destroying the property before they get kicked out is entirely different.

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.

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.

@Danielle Shaw My perspective is that there is usually a going rate that properties will sell for at trustee sales. This going rate is usually a percentage of market value but is not set in stone and depends on different factors. Is this an auction.com sale? I ask that because the opening bid is so low. Auction.com does a good job of getting the bids as high as the market will let them at trustee sales. The low opening bid, however, has the effect of bringing out more buyers and more competition, which will drive up the winning bid. I bought a couple of condos and got great deals on them in 2012-2013 when other people weren't interested in buying what I was buying. Today's environment is different and I would suggest going to the sale as a learning experience and seeing where the bid ends up, if the sale isn't postponed.

Thanks for the info Andy Mirza  - this is from Auction.com.  Yes I may go just to get the experience and make sure I don't find out later that it went for something I would have paid for.  We will see.... 

Hey does anyone direct mail market out there? How does one find tax delinquent properties on the San Bernardino Assessor website? I've gone to the MAP Parcel viewer website, but I can not seem to find where it is listed if a property is tax delinquent. I know I can go to the assessor and pay for a list, but I would rather not do that as I have very little money for marketing. If there are any strategies to find these properties, I would greatly appreciate it.