Foreclosure/After Courthouse Sale
I tried to work out with seller but we didn't have the time to stop the sell. This property is worth say 140K; the lender started the minimum bid at 157K, even though the initial loan was 129K, (which by the way is confusing). It sold back to the lender and I want to make an offer before it goes to the REO dept/real estate broker, but am not sure what the bank would consider reasonable; minimum bid was more than it is worth. Anyone have any experience buying from the bank immediately following a sale before it goes to the realtor? By the way Countryside is the Lender...Please help asap.
TBIRDFLIGHT,
Did you research the property at the courthouse? Was CountryWide the 1st leinholder or the 2nd leinholder? If they were a junior foreclosing on the property, then that may be why their opening bid was so high. If a junior forecloses on a property, then they have to pay off the senior in full. So they were trying to get as much as possible from the foreclosure auction. You may want to have a title search done on the property and check out the casefile again.
If you call CountryWide and explain that you are an investor and serious about purchasing a property that never sold at auction, then they may be willing to work with you. You have to ask to find out. Countrywide is very hard to work with, so you may have a hard time getting the property at a low price. I would move on, but that's my opinion.
Tanya[ Edited by tanya1215 on Date 04/01/2003 ]
Thanks for the fast reply; from the info I have it was a first mortgage. It had been delinquent about 10 months+ though. I was wondering what you might think the bank might consider accepting for all cash offer or what I could base my offer on considering those numbers. Is there a percentage off of the minimum bid or the FMV that I could use? If so, should I look at FMV or Minimum bid amount?
A few of my more "Full Time" investor friends have complained quite a bit about how bad Countrywide has been to work with. With the numbers mentioned and the fact that Countywide is such a pain in the arss. I would move on to the next deal. My opinion for what it is worth.
Thanks for the fast reply; from the info I have it was a first mortgage. It had been delinquent about 10 months+ though. I was wondering what you might think the bank might consider accepting for all cash offer or what I could base my offer on considering those numbers. Is there a percentage off of the minimum bid or the FMV that I could use? If so, should I look at FMV or Minimum bid amount?