Foreclosure sale questions for the pros - Posted by S. B.
Posted by S. B. on July 09, 2003 at 21:18:25:
Here’s the situation. Found a 2 year old house valued at $160,000. Tried to work a sub2 with the owner, but there was too much outstanding debt to make it worth it.
It’s being auctioned tomorrow, with an opening bid of $118,150. At this price, it would make a very good investment.
The attorney handling the foreclosure informed me they would need certified funds for the entire amount the day of the auction. I do not have that amount! So I contacted the lender (probably stupid move), in a pre-emptive attempt to gain approval for my auction offer (20% down, with additional funds in 10 days). The person who had been handling the loan informed me “the attorney sets the contract terms of the auction” (What? didn’t you fund the loan? Don’t you have any say in how it gets paid back?). He was not aware that an opening bid had been established. To the opening bid amount he responded “we’ll need much more than $118,150 to satisfy the loan. That doesn’t even come close to how much we are owed.” (Well duh, that’s why I’m so excited about this property!)
In my county, very few investors attend these auctions (by the way, this is an out-of-state lender). Is the opening bid usually what the lender is willing to accept? Or do you think they will keep bidding the price up?
Any feedback is welcomed.