Sheriffs Sales
It seems that most Sheriffs sales go to the original lender, who is probably into it for more than the worth of the property. However, sometimes the investors bid on the property and get the bank's position. Other than competition, why would an investor bid much more than the bank position? I have seen $50,000 foreclosures go for $150,000. Any techniques on motivating the homeowner to then move out during his redemption period?
I can think of no reasons why an investor would pay more than the as-is, fair market value for a property exposed at Sheriff's sale.
Irrespective of the judgment amount, the only material number is the as-is, fair market value. Perhaps your "$50,000 foreclosure" had a market value from $150,000 to $200,000 or more.
Even if the home is worth $150k, why would you bid more? If homeowner redeems, I assume they only have to come up with 50k plus interest. What difference does the value have with the amount bid?
The objective to bidding on a property exposed to Sheriff's Sale would be to acquire that property at a favorable price. Hopefully, at less than it's as-is, fair market value.
If the property is worth $150,000 in it's as-is, fair market condition, why wouldn't an Investor bid up to $150,000?
The amount owed is only the amount that the lienholder wants to recover, and is the starting point for opening bid.
You should visit other boards and read about this technique (Sheriff's Sales).
If you need a list of other boards' URLs, email me TheShortSalePro@foreclosurefocusNJ.com