Forclosure Bidding Price
Can anyone know why a real estate trustee " for banks" brings two different prices at the court house for the same property? For example, last month he has $130,000 as starting and went up to 170,000 for same property. I thought banks bid to settle what is owed. Do banks want to own properties in Texas? Thanks Danny
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Lenders have the right to start with a lower bid and reserve a bid as well. Texas is one of my strong markets and I see a trend in Texas where lenders go over the total dollar amount owed by 10 to 20K. Not sure why they do this but a large number of Texas lenders are holding a lot of REO's.
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Thanks JohnMichael,
I am confused. Another trustee in the same courthouse said that by law banks in Texas are not allowed to compete with buyers. They should bid only upto what is owed.
Thanks in advance. :-?
In most states, the laws are written so that the lender can only attempt to recover the principle loan balance, accrued interest, late fees, penalties, taxes paid on behalf of the property owner, court costs and attorneys fees.
The foreclosure practices and procedures do vary greatly, as some lenders will openly market their inventory and others even try to hide them.
Go to http://www.capitol.state.tx.us/cgi-bin/cqcgi to learn about Texas foreclosure proceedings.
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If you are purchasing a property at a foreclosure sale and it is the first that is foreclosing and you are the high bidder you will have no responsibility towards the 2nd.
The only right to the builder will have to the property would be to protect his interest in the property if he is in a 2nd position would be to bid on the property to secure his interest.
Take a look at the following article:
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=787
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=779
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=771
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=747
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=725
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=723
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=720
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=717
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Thanks for the help. This forum is amazing! So much info.
Thanks,
Mark
If the 2nd is by the same company there might be a subordination clause. That links the two into one. Is this still practiced? I remember hearing about it in book about foreclosure laws (it may be dated info though).