Court Auctions?
Does anyone know why there is a large gap between the home price listed on the legal notice and the actual auction price? In some cases the loans have only been originally aquired 3 yrs ago. Is this just a settlement where certain bank just dont want to hold on? thanks in advance for any input
are you asking about judicial foreclosures or other sales by the court?
I do see the same trend too in foreclosure by power of sale in front of court house. The loan amount is 300K and the starting bid price is 230K. The loan is generating from 2005 and is a 30 years loan. Generally, I will think the principle will be paid very little since it is a 30 years loan. I don’t understand why the staring bid price will less than the full loan amount?
Quote:
On 2008-06-16 23:58, djmadmike1 wrote:
Does anyone know why there is a large gap between the home price listed on the legal notice and the actual auction price? In some cases the loans have only been originally aquired 3 yrs ago. Is this just a settlement where certain bank just dont want to hold on? thanks in advance for any input
im not sure about a bidding frenzy with over 100 home going and only about 5% of the attendants actually bidding the question is they can afford to lose...at any givin time there could be 2,3 or even 4 offices auctioning off homes...no freenzy here
I may have over stated "frenzy" but the following is what I meant:
"auctioneer opened the bidding at $150K and no one bid. He lowered the opening bid to $50K and the crowd bid the property up to $192K."
Classic auction/mob mentality.
In our area the Plaintiff opens the bid at a nominal $100.00, but indicates to the investor/bidders the amount they are willing to go to.
If no one is willing to beat the shown amount, the Lender will buy the property back for the $100 nominal bid.
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i ve seen the mob mentality before as well...what im noticing is that the areas where there are a lot of homes for sale or foreclosure seem to start low....a colleague of mine saw this subdivision where more than half of the homes were distressed and one home went for 50k less then what was owed on it...
look at the topic of "credit bidding".
I have been doing short sales for many years and have seen fewer than 5 deficiency judgements period..
Why worry about statute?
Especially if a short sale is done on the property.
Part of theSS process is to give financials to the bank. The foreclosure process here costs about 5K all said and done.
In order to get a deficiency judgement the creditor would have to take you to court, get a judgment, and then try and collect or attach it to something of value..
IF the person is smart or has a smart friend like you they would put future real property into a trust.
BK can waive most of amount owed or get rid of judgements in most cases so the point is really "why would the bank incur additional legal costs and take the time to seek a dubious judgement that has a small chance of ever being paid off?"
I am going to try Lexis as mentioned by John, that is cheaper than my $250 an hour attorney (who is great).
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Jules - a short sale does not guarantee no def judgment
Yes, a short sale does not eliminate the possibility of a deficiency judgment.... unles you get forgiveness and satisfaction of the debt as part of the package.
Also, many, if not most, of the recent FL foreclosure final judgments I have viewed included language that allow and approve subsequent deficiency judgments as part of their boilerplate documents.
The Devil is in the details!.
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