Posted by dew on June 15, 2000 at 20:48:09:
Call your public trustee, or whatever enitity does the foreclosure sale, and then call the treasurer or assessor for the dates and time lines on tax lien sales.
Seeking advice about buying at foreclosure sale - Posted by Heather - MI
Posted by Heather - MI on June 13, 2000 at 16:54:04:
Hello all. I’ve never bought at a foreclosure sale before, but came across a very attractive property in the newspaper the other day. It’s going to be sold next week. I’m going to try to visit the homeowner tomorrow to see if I can get him to sell to me directly…but that may not work out b/c there’s not that much time left until the sale. Here’s the info:
2/1 condo in good area
FMV about $60-80k
Loan balance $6,800
I did a preliminary search at the county today, and don’t see any other liens on the property.
I live in Michigan, which has a 6 month right of redemption. However, in this case it’s 12 months b/c the mortgage was originated in 1978!! (before the redemption period was changed from 12 to 6 months)
My question is what are my risks (if any) of buying at the foreclosure sale? I know that I earn interest on my money if the owner wants to pay off the loan. Should I bid more than the mortgage amount? If I do and the owner pays me off, he’s only obligated to pay me that he amount owed, correct? Should I get insurance on the property? Anything else I should know?
Thanks everyone!
Heather
Re: Seeking advice about buying at foreclosure sale - Posted by JoeKaiser
Posted by JoeKaiser on June 14, 2000 at 24:02:49:
There’s nothing to be gained by bidding at the sale. In redemption states, foreclosure sale dates are practically meaningless. The redemption date is the only date that matters.
You’d have better chances by either dealing directly with the homeowner or buying an lien interest in the property if you do find one.
Owner pays back the entire bid amount. Here in my state, if the owed amount is $25k, and the winning bid goes up to $50k, then the lender is paid off and $25k is deposited into the court and the owner can walk down and get a check for the $25k. He pays back the entire $50k to redeem.
Joe
Re: Seeking advice about buying at foreclosure sale - Posted by Stew (NE)
Posted by Stew (NE) on June 14, 2000 at 15:16:06:
I think I am getting confused by the redemption period for a tax lien and one for a foreclosure. How can you find out what this amount of time is in your state? Is it an ax.com?
Re: Seeking advice about buying at foreclosure sale - Posted by ScottE
Posted by ScottE on June 14, 2000 at 24:54:51:
Joe,
I agree with everything you said except for the last line. If the borrower was to redeem, all he/she would have to come up with would be the total amount owed on the property (principle,interest,late fees, court costs and atty. fees, and poundage, if any) not the amount the property was bid up to (in your example, $50k).
The winning bidder would get all of his money back ($50k) from the court and the lender would be paid off with the money from the borrower.
Is that not how it works in your neck of the woods?
Take care
Scott