All Forum Posts by: James W.

Wow this is a lot of detail.

All I was hoping was that i can pay the defaulter owner the money to clear his dues. He pays the bank, avoids foreclosure, and i get the house. Apparently I cant do that? And the bank is calling a note upon this??

Wow. Talk about helping both the bank and defaulter - they wont take it! 

What is "calling the note" anyway?!

oh wait - what happened to the rule of senior lien wiping off junior. what if the condo lien is the first lien. and the mortgage is not in default and so there's no bank lien.

even if the house is in default with mortgage lien - if the condo lien is first - wont that do the trink.

i know it wont - just trying to understand if theres an exception to this rule here?

 Yes I should have figured that out. Thanks Rich.

Hi guys,

I am seeing 400K houses scheduled for Auction for 10K Judgement Amount. Plaintiffs are Condo Associations etc.

Whats the outcome of winning this bid? Assuming there's no second mortgage, no big liens, etc, and I am the winning bidder - do I really get this house for 15K? 

I know I dont - but how does it play from here - after I win this bid?

 Sure. I was saying, buyer pays the full outstanding balance on the mortgage. and then some more to the seller in default.

 And then, if you don't refinance it out in the name of the new owner, you face going back into foreclosure again for the due on sale clause that no one thinks the lender actually does, but they actual do, daily.

Totally lost on this one.

Thanks - but this does not explain - why has this house landed in Auction - when the judgement amount is way less than the market price. At this time there's no room for the owner to keep his home, or get this top dollar. So he is going to get foreclosed for the Judgement Amount.

This is simple for houses that have more debt than market price. I dont see why there are houses in Auction, that have debt way less than the market price. Investors can simply pay the bank judgement, and cut a deal for the owner to walk with some money - now that they're going to lose the house and equity at auction, in addition to getting foreclosed.

So again - this does not explain - why has this house landed in Auction - when the judgement amount is way less than the market price.

Hi guys  - can you analyse this scenario for me - thanks for your extremely helpful inputs!

I see a house listed for Sheriff Auction. 

The market value of house is 500K.

Owner's Equity is 200K

Judgement Amount is 300K.

1. My first question is - why is it on Auction in the first place? Instead of getting foreclosed - why cant the owner sell it for 300K - and walk away? When they foreclose him - he still has to walk away from the 200K equity. And am sure investors would gladly buy the 500K house for 300K - and pay the owner a little extra.

Btw - this is not a hypothetical example - I am seeing houses like this on the list. That are not in shambles - and are easy to bring up to mark.

Assuming theres a real answer why he cannot sell under the market - and it does land in auction. My questions are:

2 - Can I contact this owner and offer him 300K + some more, so he can pay off the Judgement and avoid foreclosure. What could be some reasons why he wont agree?

3 - Assuming he does agree - does this need lender's approval? If I paid less than Judgement - that would be Short Sale. But in this case I am paying a bit over the Judgement.

4 - Assuming both owner and lender are ok with this - can this be done once the house is already scheduled for Auction? Will they cancel the auction in that case?

5 - Can all this be done Before the Auction [ Pre-Foreclosure] - like - if I come to know the house has been served a Foreclosure Notice.

6 - Lastly - assuming its all done - will this be a normally scheduled closing, with agents and attorneys - so I get the deed and possession.

Thank you.

Hi gys,

I noticed sheriff auctions notice in NJ publishes a Judgement Amount in Hudson County, and Upset Amount in Bergen County.

First off - am i right that these are the numbers close to the lender's outstanding debt plus costs? And so the bank wont give away the house below that number?

And second - how close are these numbers to the actual auction day numbers? 

Any experiences?

Thanks.

I have a feeling - that in case of condominiums - some big liens are out of the picture.

Like Sewer and Water.

Question - am I right that in case of condos - the Certificate of Occupancy, Smoke & Fire Certs, Permits etc . - should be the Management's Responsibility, and not of the unit owner?

How much each of them cost anyway, ballpark?

 Great thread.