Trustee's Sale question
At the trustee's sale is the highest bidder just responsible for the liens and taxes on the property, or are you also responisble for other money the Homeowner may owe as well? I am going to a T.S. next week I had to get a partner because the starting bid is too high for me he is nervous as am I. He wants to know why don't the homeowner just sell the house if there is so much equity in it. Well I told him maybe because they are in divorce or loss of job things like that. Then I started thinking are these really the reasons why many of these people with a large amounst of equity in their homes let their homes go into foreclosure?
Any insight much appreciated.
jthiara,
Make sure you understand which lien is foreclosing!
If it is the senior lien holder, then you only have to worry about the winning auction bid plus taxes to bring the property current with the state. Junior liens are extinguished by the foreclosure action of the senior lien.
Often, a junior/subordinate lien is the lien affecting the foreclosure action. If this is the case, the senior lien will still have to be satisfied in order to acquire the property outright.
It is completely understandable to be uneasy about bidding at a foreclosure auction, especially if it is your first. DO YOUR DUE DILIGENCE BEFORE BIDDING AT A FORECLOSURE AUCTION!
Know what the property is worth and don't bid higher than what you think the property is worth. Don't get caught in a bidding "frenzy" on the property.
Good luck. Let us know how it turns out.
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jthiara
I am a little concerned about you indication of large equity position on your subject property.
Are you talking about market value, apprised value or ????
Have you researched your subject properties back ground at the courthouse?
Do you have a written agreement from your investor?
Sorry, but based upon your comments, it sounds like you have not done your due diligence on your subject property.
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So far I have recieved my information from the title company and their records are 4 months behind the recorder. But anyway here are the details: the deed of trust that is forclosing is dated 1992 for $160,000, which is the 1st loan and besides that there is a lien from 1997 from some country club for $1608. other documents that were found were a interspousal transfer grant deed for 1998,individual grant deed dated 1992, and a short form deed of trust and assignment of rents dated 1997 and the beneficiary is some single man from what I understand The defaulting homeowners must have borrowed money from this individual, but please correct me if I'm wrong. There are two couples that own the property by the way. I called the treasury office and they told me that the taxes were paid by the mortgage company. The situation is as follows the owners live about 100 miles away and the house is rented. I knocked on the door and the people that answered said that they were unaware of the foreclosure and didn't have any info. for me. I tried to contact the owners by phone but my calls were not returned. The house was bought in 1992 for $200,000.The market in this CA town is hot the prices have skyrocketed in the last ten years the unpaid balance in foreclosure presently is $146,570 and the market value is around Lowest - $363,000 and Highest - $416,000. got this online also the title co. gave sent me some comps. and they are in line with this estimate. The assesed value for taxes is $239,343. the trustees sale is jan 3. I believe I still need to get a title search done by title co. what is this search called again? My partner is a childhood friend who owns a a local business and we are going 50/50 on this one. He has a real estate friend who will sell the property for us once we own it. Pros please feel free to give me any feedback. What more can I do?