Final Judgement / Ass'd Value - Which Is Purchase Price?
Ok, looking at a local business paper, I see foreclosure listings every day. Am I reading this right?
Final Judgement = price someone paid for the property AND
Ass'd Value = is the property's value?
ie:
example 1 - condo final judgement = $5886 and ass'd value=$26,177.
then you have some with higher final judgement amounts than ass;ed value. Are they paying more than what the property is worth thanks.
Higher final judgement than assessed value?
Assessed value doesn't equal market value. Assessed is just for taxes; if judgement is greater than FMV, then someone took a loan at a great % than their property was worth which people, at times, do.
Thanks,
OnTheWater
The Judgment amount is what the Plaintiff (usually the mortgagee) is seeking to recover from the forced, public foreclosure sale.
The assessed valuation is for tax purposes and may or may not have a reasonable relationship to market value.
So which is it? I thought dozens of users on here were into buying / selling foreclosures?
And no one has a clue? This info comes out daily in the local business newspaper I subscribe to, Daily Business Review, and just need to see how to use it.... THere seems to be dozens of foreclosed properties listed weekly and exchanging hands and someone is making money on them locally.
Your question was answered!! Maybe you need to polish up a bit on your real estate knowledge.
The county "assesses" a homes value and it uses that number to calculate your annual property taxes. This number has NOTHING to do with the market value of the property.
Your home can have an assessed value of 70K but when you go to sell it you list it at 200K because that is what the going rate (market value) for your house is.
The banks are going to push the sale price at a foreclosure auction up to their investment. So if the above home defaulted on a balance of 100K on that 200K loan, and the bidding starts at 5K the bank will quickly bid up the price to 100K and then stop bidding. Investors may then continue bidding. Thus the judgement amount would be 100K and the assessed value would be 70K
Usually banks are alllowed to add in certain costs of foreclosure into the judgement they are seeking.[ Edited by steeler19 on Date 03/02/2004 ]
Thanks... you are right I have no clue on some things, that's why the questions. THanks for the repsonseS.
So one last question.... on same example:
example 1 - condo final judgement = $5886 and ass'd value=$26,177.
That makes sense b/c those condos are worth like 70-80K... so an investor bidding would bid up to like 20% less than market value I presume? so like $50K max bid? that makes sense, I think ... think,,... I got my answer.. Can you confirm? Basically I would need $50K cash to make this deal.... and through the ass'd value out the window, since they are sooo low where I live.
Do your homework on the property. Get comps (it seems you have an idea of the going rate) but find actual comps less than 180 days old - as this is what a lender would use. That'll give you a good idea of what the home would appraise for.
There's no hard and fast rule for bidding in a foreclosure auction. There are many factors. Such as property condition - if you bid 50K on a 75K condo and it needs 20K of work it's not such a great deal anymore now is it
Also, the property may have a 2nd mortgage on it which you would have to deal with - can just as easily wipe out your profit
It could also be behind in taxes - if they weren't paying the mortgage they probably weren't paying the taxes either - you become responsible for these also.
etc., etc. you get the picture
Do your due diligence and find these out before you bid. You don't need to know the numbers down to the dollar but should be close so you can accurately judge your position.
If the listings in your paper give you an address you should be able to look this stuff up. I think FL has all this stuff available online.
Roger