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Need quick foreclosure auction advice! :)


c m chase
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Tomorrow morning is the foreclosure auction on the house I've had my eye on. :shock: Now...lord knows I don't have the cash to buy it at auction, but I am going to see who gets it and for how much.

The house has been on the market forever, so I doubt there would be any investors interested...I imagine the only one who bids on it will be the bank.

SO....I've been told that if the bank gets it, it might be very possible to offer them a certain amount and they'd be somewhat likely to go for it....since banks aren't necessarily in the biz of having houses.

Assuming that it's plausible that I can offer what I want to pay for it....what happens then? How does it break down once the bank has it? Would it be like a FSBO? Would I still get contingencies on the contract...have time for inspections....etc? Would it be as-is, 'take it or leave it' type of thing?

Any idea of how this works?

Thanks bunches!!!! :D

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Have you already obtained a mortgage approval and received a pre approval letter from your broker? You should already have this to bid.

I am going to be lazy since there is not much time to get this accomplished. Read the heck out of this website and it should tell you everything you need to know and a little more. It is for the HUD homes in your area.

http://64.70.28.132/fp1/ok/

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You must have been waiting on an answer.

I know the one I use in the midwest will show bid results from previous properties. Sometimes you can get an idea if the bid price needs to be higher, or maybe you can under bid the property and sometimes get a real steal.

DO GET AN INSPECTION!

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Ok....I'm a little confused. Since this is a foreclosure, does it work like a HUD sale or something?

The house I want isn't HUD, as far as I know, it's just a normal foreclosure that goes to sheriff's auction tomorrow. I've not heard any mention of HUD at all on this house....

:shock: Is there something I'm completely missing??

Thank you!! :D

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It will all be the same concept. You have your preapproval letter from the broker/lender for your loan and an earnest money check ready in case you win the bid.

If you are bidding and the price gets too high for what you want to pay for the house, then you would simply quit bidding. Strart as low as you want, or they will accept. If the bank gets it they will try to list it with a realtor, and get fair price from the property.

I did see that you had a realtor, didn't I?

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we bought our house from the bank from a forclosure. We got a great deal on it to and sometimes you can negotiate them to have something fixed. We didn't we just took it as is but the original person didn't distroy the house when she left either. We bought it just like we would a private person still have to do all the paper work and have an aprasial. We didn't have any problems at all

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Thank you for your input op! :D Glad to know it wasn't as hard as I thought!!

amortgageman....oooooooh....I see why I was confused. :wink: I'm not wanting to bid on it, actually.

I wanted to attend the auction just so I could watch and see if the bank DID get it and for how much - I WANT the bank to win the auction so I can approach them later with an offer to see if they'll take it. :-)=

If I *could* bid on it, I would for sure....but I have to have 10% down and the other 90% within 3 weeks....I know I can't come up with that. Heck, I couldn't even have the 10%! :lol: And there's my other reason for wanting to see who gets the bid and for how much....I can't do it myself!

Thanks for all your answers though!! No wonder I was like....uhh...huh? :D:D 8)

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No wonder I was like....uhh...huh?

Oh! :oops:

Banks have a tendency to not want to negotiate with paying closing costs.

On top of that I have gotten three different referrals in Indy from people wanting a preapproval letter done (just like this) the night before the auction. I was starting to think that was part of he bidding process.

Keep in mind though, there can be some good HUD properties, and sometimes the price can be a real big advantage, just in case you are not able to get this one FROM the BANK!

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I just got back from the auction. It was kinda cool....learned something I didn't know, at least. :D

I sat through like 15 houses auctioned off, then it came to the one I wanted. They said "this case has been recalled. Next case...." :shock::o

So, as I was leaving, I see another guy leaving so I yell at him and ask if he was there for the house. Yes...he was....he's an investor. :shock: (Someone trying to take my house! LOL)

I ask him what that recall means and he says the guy probably filed BK. Ahhhhh...makes sense now on why he was wanting so much more than it was worth and got mad when I offered so low!! :idea::roll:

So...my question now is....where does the house go and what complications does that bring into it? I'm assuming it just goes back to the bank? Will they just put it on the market again?

:? What a friggin mess. This is probably a sign I should let it GO. :roll::lol:

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I suppose if you are wanting to look into this house further, you will need to find out through the county (or township assesors office) who actually owns this house.

Is the home vacated?

After you find out who owns the property, then you would want to inquire about possibly a short sale (where you buy the home from the homeowner before the foreclosure is complete).

All you can really do is find out if the price you are willing to pay is acceptable to the lenders, and possibly the BK courts.

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I kinda know who the owner is...kinda. :? I have the guy's name and address, actually, and that's from finding the foreclosure case record. (I'm a snoop :wink: ) Now that he's possibly filing BK, I might NOT know who owns it....him, the bank, someone else... <:)

I guess since he could be filing to reaffirm (is that the word?), then he wouldn't want to get rid of the house at my price anyway....otherwise he would have considered my previous offer. The guy listed the house $10KL above what it was appraised for, for pete's sake! And he's going into foreclosure?? Seems to me that beggars can't be choosers! :roll:

Anyway, I'd talked to the guy's realtor before and made an offer...he said it would definitely be a short sale - thus my low starting offer (which was $15K less than the f/c amount). The realtor rudely said he rejected it with no counter. :roll: That was why I went to the auction...so I wouldn't have to deal with the rude realtor.

The home is vacated, yes....it actually looks like it's been used as squatting grounds for awhile - not in the best condition (another reason for my low offer). :lol:

Thanks for the info....I'll try to contact the bank again. Last time they wouldn't tell me anything. I assumed because it was on the market. Now that it's not, I'll try again.

THANK YOU! :D

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