Courthouse Step Sales
Hi everybody,
My husband and I went to our first courthouse auction. Neither one of us understood whay everybody was there. Nobody bid on anything except for the bank, they bid $100.00 only.
There was one guy there that was a hard money lender he said and apparently he had a house that was being auctioned off as well, He bid $100.00 as well.
My questions are 1. Why did nobody else bid? and with that question, Why was there so many people there (30) ?
2. If I were to bid $101.00 would I have won that property and if I did win it what would have been the mortgage? $101.00?
I bought a book there that shows all the sales and in it it lists (for example this Hard money lenders house)
Date to be sold: 3/19/2004
Final Judgement: $67,621.12
Total Assessment: $50,900.00
___________________________
Equity $(16,721.12)
Loan Date: 10/19/2000
Mortgage Type: BALL
Original Loan Amount $46,500.00
Intrest Rate:16.5%
Monthly Payment: $639.28
Loan Balance: $46,500.00
Last Payment: 9/1/2001
Prior Sale Date:10/1/2000
Prior Sale Amount:$0
Where did this Final judgement price come from and what does it mean?
What would I have to pay for this house if I was to bid $101.00 and won?
What would happen to this property if the guy that loaned the money on it did not bid?
Also, I see a house that goes up for sale on the 22nd of this month and would like to have it, should I go see if the owners are there and try to offer them and the bank something?
Thank you
Pam
If you would have bid $101, then the bank would have bid more. You would not have gotten that property for less than the mortgage plus fees that was owed to the bank. Usually the people that show up to bid know this, because they have seen it listed somewhere. Also there may have been tax liens or another mortgage in front of this one, so there was really no value in the property. It is possible that the 30 people or so were there for the next auction. They are often done one after the other.
Befor you offer anything to the owners of the house, you must find out about any liens that may be out there. By buying out the bank, you will own any of the liens on the property.
I have only bought one house at auction, but have gone to several. I'm sure others here know more than I do.
Also, some people are there to compile lists, to determine which houses have had a postponement of auction, etc. I've been to our auction a number of times, and the same guys tend to bid each time...on of the trustees of the sale picks them up. He's a lawyer, an investor, and a Realtor. So, he makes money on the front, the middle, the end...