Purchased Property At Sheriff Sale...now What?
Won the property for $75,000. Put 10% down day of sale. Balance is due 10 days after confirmation of sale (Nov 20). The total judgment amount to the plaintiff (US Bank) was $107,000. 1. Why would they let me buy the property for 75,000? and 2. Can they come after me for any of these added fees?
Our sherriffs sale is supposed to release all leins on the property. Check with your local organization for specific details of your states rules.
(BTW I would have checked this BEFORE I purchased the property)
Prior to the auction, I did search for superior liens & taxes at the courthouse, which revieled that there weren't any. Some of the fees include:
Post judgment interest 3,481
Escrow advances 1,690
Property Maintenance 1,989
....
I'm guessing that US Bank was willing to cut their losses and accept the $75,000.
I am sure you will owe 2003 taxes on the property. I do not believe they will come after you for the other expenses. They sold you everything, their lien, property deed you get from sheriff. You could sue the former owner for those fees but if he had money he would have paid his mortgage. May have other property however. House is probably worth $107 or more but like was said bank just wanted quick sale. Glad you did homework before bidding. Good luck with it
Ted Jr
What were you bidding on? Were there any superior liens (superior mortgage, property ax lien, HOA, etc.)
It's important to know exactly what is exposed for aution, and what the winning bidder actually 'wins'
Chances are that the mortgagee feels that the property isn't worth $107,000 and sought to mitigate additional exposure by accepting $75K.