text: Foreclosure Auction Question (square foot, auctions, sale, accept) - Foreclosures, Short Sales, and REOs - - City-Data Forum
  Foreclosure Auction Question (square foot, auctions, sale, accept)
  49 posts, read 109,740 times
  A house that I am interested in is coming up for forclosure auction. The loan amount is $517. There are a couple of the same model houses in the same neighborhood available for re-sale for $395 and they haven't sold at those prices. For me to take the risks associated with purchasing the foreclosure, I feel like I would need to get it for something like $330 or $340. Is this realistic given that loan amount, or do you think this is one the bank will end up owning? I'm asking because I need to travel if I want to attend the auction and am trying to decide whether it is worth my time.
  2,403 posts, read 6,077,551 times
  Originally Posted by sean&diane
  I have a friend who bought a 5 acre lot with 3 br, 3 baths ,3car garage ( horse property in the country ) 2 1/2 years ago > lost home due to injury ( Can't work ) bought it for $729,000. The Bank has it listed with a Realtor for $188,000.00 and it has not sold in over 4 month ? I would think that if that home sold prior for $517,000. that maybe you could get it for around $250,000. Bid carefully!
  1,380 posts, read 5,475,973 times
  I assume you're referring to a loan amount is $517K.
  In many cases the bank enters the first bid at auction, typically it's the amount loaned or the minimum they feel it will take to move the house.
  If you're truly interested in the property you should be able to register ahead of time and be available by phone to bid. Many bidders at auctions are not personally present. Often (especially these days) the majority of people at the auction are just observers.
  14,782 posts, read 35,821,158 times
  You need to find out what the rules are for the auction for starters. How they are held varies from state to state.
  Out here the starting bid is set in advance. You should be able to find out the night before what the starting bid is. If the starting bid is $517,000 then you know the bank plans to take the house back.
  If you have that kind of cash why are you waiting to purchase at auction. Why don't you make a cash offer on one of those other homes?
  500 posts, read 1,294,746 times
  I am new to all this but it seems to me the bank gets the house back at auction for the loan amount. Then alot of times they are taking and selling these homes for alot less. Just wait.
  8,191 posts, read 29,359,619 times
  I have been to quite a few of these auctions. The house will revert to the lender if the high bid does not equal the loan balance plus the costs to foreclose.
  I'm convinced the market still has far to drop. Most listings are at $120 per square foot - which is close to the average sale price prior to Sept of last year. There are 21 nearly identical houses for sale in the neighborhood I am interested in. Only 1 has sold in the last 3 months and it was at $101 per square foot - only 3 others have sold since Aug of last year. I am not bent on buying at the absolute bottom, but can tell you that $120 is not even close! I will start making low offers on those other houses soon, but am not optimistic that they are prepared to accept the market price since most have not made any price adjustments in the 4-5 months they have been listed.
  3,210 posts, read 6,768,478 times
  Just be careful buying an auction, they are different than buying a bank foreclosure. From what I've read, in an auction you may not be able to tour the inside of the homes so you can only see the outside and what you can visually inspect from doors and windows. You may not be able to see the damage that is inside. Also if there are still people living in the home, once you win the home in auction, it is YOUR responsibility to evict the people. Also you are responsible for any liens on the property or back taxes. Those are the things that turned me off on the process.
  I didn't want to have to deal with those things so instead, I am purchasing a bank foreclosure. The bank has cleared out the house of the previous owners, all taxes and liens will be cleared out before I take possession, and I'll be able to tour the house like a normal sale. I'm also able to do a house inspection on the property and have the contigency to back out if I find the property is damaged in some way.
  Upcoming Courthouse steps foreclosure auction question, Foreclosures, Short Sales, and REOs, 1 replies