Posted by Rick Vesole on December 31, 1999 at 19:39:09:
You need to talk to a foreclosure attorney right away. State laws vary. However,I am familiar with one state where the sale has to be confirmed by the Judge. It is the Judge’s responsibility to make sure that the sale was conducted properly and that a fair bid was obtained. My guess is that there is a reasonable chance that Judge could set aside the sale. But you really need to talk to an attorney who knows this area of the law as well as local custom.
EMERGENCY!! Can Sheriff sale bid be overturned - Posted by Jeff Denney
Posted by Jeff Denney on December 31, 1999 at 10:06:39:
I had the successful bid at a sheriff sale auction on Thursday. I then got a call Friday from the bank’s attorney saying they missed the sale by 10 minutes because he has a bladder problem and had to made an emergency stop. They are going to put in an appeal to get the bid overturned. I live in Ohio. What are the chances of this appeal being successful? They have told me to give them a figure to buy my bid. The house is worth 85,000 needs 10,000 repair and I bought it for 44,000. I need to give them an answer by Monday at 5:00. Thank you, Jeff Denney.
Re: EMERGENCY!! Can Sheriff sale bid be overturned - Posted by BRnBAe
Posted by BRnBAe on December 31, 1999 at 22:35:51:
It would not surprise me to see this overturned in a state where the sale must be confirmed. It is COMPLETELY up to the judge, and heaven knows what makes them tick…at times. A couple of weeks ago I was looking into a property going to (sheriff) sale. When I checked the file I discovered it had already been to sale and was bid in by the plaintiff’s attorney, for two thirds of appraised value (which is the customary starting point here). No one else bid so the attorney got it at opening bid. Ten days later he filed a ‘motion to set aside sale’ on the grounds that the plaintiff would have to pay the defendant 2K because the bid was 2K higher than the prayer. The sale was set aside. This was on a friday when I checked the file and the resale was to be on the following monday. State law says the opening bid must be 2/3’s of appraised value and as of friday the property had not been re-appraised. If the appraisal were to be lowered, the opening bid would follow suit, thus giving remedy to the problem. As it stands, this sale will be a merry go round. Go Figure!
Unless there are some special equitable rights of redemption afforded the property owner or other secured creditors, I think this lender is “#%*& out of
luck”.
There may be some other grounds that the lender will try to establish to set aside the sale (proedural issues, etc.).
Don’t negotiate this one on your own. Have a COMPETENT Real estate counselor respond to the inquiry.
Re: EMERGENCY!! Can Sheriff sale bid be overturned - Posted by ScottE
Posted by ScottE on December 31, 1999 at 12:11:40:
Jeff,
First of all, don’t get frazzled. At the very least it disrupts your ability to think creatively. It is possible to overturn (vacate) a sale, but the argument has to be fairly compelling (i.e. an interested party was not properly notified).
Now, it’s important to know a few more things about your deal. Here are some questions that come to mind:
Is the attorney that called you the foreclosing party’s attorney?
What was the total amount owed?
Is there a “redemption period” for foreclosures in Ohio?
Is there a “Hearing to CONFIRM the Sheriff’s Sale” in Ohio?
It has been my experience that attorneys usually don’t call to offer jack squat if they think their position is solid. Keep your cool. It should be harder for them to undo the sale, but if you don’t REALLY know the foreclosure statutes in Ohio, you might consider consulting with a competent RE lawyer.
Of course, if you could make a quick $5-10k (don’t get greedy!), from the bank without the hassle of rehabbing, carrying, and re-selling without a potential long expensive court fight, you may consider the time value of the money!
Besides, if you can find $10k worth of fix-up, you may run into other problems that need to be fixed that cut further into your end profit.
Re: EMERGENCY!! Can Sheriff sale bid be overturned - Posted by TomC (MD)
Posted by TomC (MD) on December 31, 1999 at 10:22:53:
I’m betting that you are in a great spot. You won the bid. Period. In MD, I know of no such appeal process.
Of course, it depends on local regs. Where are you?
Why don’t you pick a number out of the air, and see if they go for it. Maybe $65k would make it worth your time? Or is it $75K?
Calm down and think about this for just a minute. If the lender truly could get the sale overturned, why would he even want to know how much to buy your bid. Sounds like he is full of crap.
Let’s just assume that there is a method for overturning a bid (even though it is unlikely). Who makes the decision? Wouldn’t be the sheriff - he just does what the courts instruct him to do. It would have to be a judge. I could see this one in court, “Yes, your honor, I am invoking the weak bladder defense.”
That attorney knows he is about to get in trouble with his boss for being late to the sale, and he’s going to yell, scream and try to intimidate you into going away. Keep your cool, don’t loose your temper and you stand to profit quite nicely.
Posted by Jeff Denney on December 31, 1999 at 14:52:10:
*I live in Ohio,
*There is no redemption period
*$94,000 is owed on property
*The judge has to confirm the sale
*Greentree mortgage is foreclosing
*Greentree’s attorney in Cinncinati called this local attorney office to bid for him.
*I think the local attorney will have to use their errors insurance. Is this correct?
Also look at the aspect that this attorney can continue suits, appeals, motions and assundry other harrassments without much costs as he represents his interests. You on the other hand will have to pay an attorney every step of the way. By all means seek counsel but do not be inflexible. Time, energy and peace of mind have their price.
