Foreclosure Bidding Question
I have heard that in most cases, when a Lender institutes foreclosure proceedings agsint the property is sold at auction, the Lender usually ends up buying the property .
My question is--generally speaking--how high will the Lender bid if there is no equity in the property.
That is to say, if a house is worth 100,000 (i.e. MV=100,000) and the Lender is owed 100,000, will the Lender probably be willing to bid up to 100,000?
Ginger,
If you are looking for list of properties facing foreclosure you best bet is county records. In CA. Redloc, Dataquick, and Realtrac will all sell you this information with various lag times between the filing date and when they make it available. Or you can go to the county records office and get it hot off the presses for free. Look at Notice of Defaults and Notice of Trustee Sale recordings.
From what i have heard about buying Foreclosures in California you better go talk to a qualified attorney before even starting to contact people. Im not saying it cant or isnt done but there are certain rules and laws that differ in your state from most others. good luck.
Hi Ginger,
California laws are very clear as to what steps you must take when buying residential houses 1-4 units which are in foreclosure.
We have developed a very good contract that, in our opinion, satisfies all of the legal requirements.
The key issue is not representation by a licensee but the bonding requirement on that licensee.
If you are the principal buying the property the bonding requirement does not attach.
If you are an agent representing the buyer, enter into a partnership agreement, which later you will be bought out of. Doing so makes you the principal
I caution you to make sure you give adequate notice to the sellers per legal requirement so the seller doesn’t unwind the transaction.
As for info on foreclosures, one of the easiest ways is to get the list from the title companies. It is a little old but may work anyway.
Also find the "Online" legal newspaper in your area and subscribe from them..
Good luck
Thank you all for your time and input.