Posted by Jim IL on April 01, 1999 at 24:19:00:
Just out of curiousity, what do you mean by, “Just went on the foreclosure auction block”?
In my area, if a home goes thru foreclosure, the final step is the “sheriff’s” (sometimes called “Trustee”) sale.
To obtain one of these homes, you must actually show up to the auction, with 10% down, and have the remainder of funds within 24 hours.
The 10% must be in certified cashiers check or cash.
I have watched a few auctions in my area, and only learned that I cannot afford to buy there, because I lack the funds so quickly. And the homes usually go for at or near the FMV.
Also, in my area, the lender by default, (if they choose to excercise the option that is), gets a BID equal to the amount owed on the home.
That is why at least 80% and higher, of these homes go back to the lenders.
That is when we the investors can pick them up from the lender, usually for less.
After they attempt to market the homes at FMV.
I know I did not answer your question at all, and am not qualified to do so. But, your post gave me some questions, and I wanted to be sure that I read it corectly so that I too may learn from whatever responses you get.
P.S. One “other” thought,
What about contacting the “Foreclosing” lender, and see if they will “Short sell” the home?
they may be willing, to sell you the home for a loss now, to avoid the expense of foreclosure.
I honestly have never seen this happen, but in my short time investing, I’m am never surprised at what I have seen take place. you just NEVER know until you “ask”.