Foreclosure process questions - Great Lakes 4x4. The largest offroad forum in the Midwest

Go Back   Great Lakes 4x4. The largest offroad forum in the Midwest > General 4x4 Stuff > The Pub
GL4x4 Live! GL4x4 Casino

The Pub A friendly forum where everybody is nice, and will answer any questions you have about life.

greatlakes4x4.com is the premier Great Lakes 4x4 Forum on the internet. Registered Users do not see the above ads.
Search
Reply
 
Thread Tools Search this Thread
Old September 17th, 2012, 12:52 PM   #1
Rainbird1099
Titles are over rated
 
Join Date: 03-16-06
Location: Highland
Posts: 1,271
iTrader: (9)
Mentioned: 0 Post(s)
Send a message via Yahoo to Rainbird1099
Default Foreclosure process questions

So my wife and I put an offer in on a house. It is listed as a short sale, the seller accepted, and we are waiting to hear from the bank.
I drove by the house yesterday, and noticed a letter taped to the door, stating it was going to a forclosure auction next month at the County courthouse.
We have already left our ernest money deposit, and paid for an inspection.

My concern is will the house be sold at the auction, and we are SOL?
Can I go to the auction, and buy the house (hopefully for less)?

My real estate agent is telling me that the bank will probably bid what is owed so they keep the house.
Isn't the bank the one auctioning the house?

Looking for some help if anyone has experience in this process.
Rainbird1099 is offline   Reply With Quote
Sponsored Links
Advertisement
 
Old September 17th, 2012, 01:07 PM   #2
WSU JK
Senior Member
 
WSU JK's Avatar
 
Join Date: 04-25-08
Location: Lowering the Per-Capita Income of Bloomfield Hills since 2009!
Posts: 2,575
iTrader: (4)
Mentioned: 1 Post(s)
Default

Is the house going up for tax foreclosure or is it the mortgage being foreclosed? Fall tis the season for tax foreclosure auctions for many of the counties in Michigan.

Regardless of whether it is a tax foreclosure or a mortgage foreclosure, you can indeed go to the county and place a bid. Check with the county treasurer's office as most counties require you to register first in order to bid. And some require you to pay a small registration fee ($10 - $20). Also, be sure to read the county's bidding requirements because most will require that the winning bidder pay the entire amount by COB on the day of the auction.
WSU JK is offline   Reply With Quote
Old September 17th, 2012, 02:01 PM   #3
Tizken
Senior Member
 
Join Date: 07-29-07
Location: Jackson, MI
Posts: 435
iTrader: (7)
Mentioned: 0 Post(s)
Default

If it was a tax foreclosure it would have been foreclosed on by the county many months ago so I would have to assume it's a foreclosure by the bank. Tax auctions also are usually not held at the courthouse from what I have seen.

From what I've been told the bank will usually bid what is owed on the mortgage, then it seems they will list it for much less once they get it back on the market. Why don't they just take reasonable bid at the auction?
Tizken is offline   Reply With Quote
Old September 17th, 2012, 02:18 PM   #4
Just a Spouse
Motrcytman's spouse
 
Just a Spouse's Avatar
 
Join Date: 11-05-05
Location: Lake View, AL
Posts: 7,142
iTrader: (0)
Mentioned: 0 Post(s)
Default

Sometimes, these are cash only type situations, or you have to go through the auction house preferred lender. Good luck.
Just a Spouse is offline   Reply With Quote
Old September 17th, 2012, 04:58 PM   #5
MonkeyBiz
Master Cocksman
 
MonkeyBiz's Avatar
 
Join Date: 11-06-05
Location: Whitehall
Posts: 8,320
iTrader: (10)
Mentioned: 7 Post(s)
Send a message via Yahoo to MonkeyBiz
Default

Never pay for anything, until you have bank approval. Kiss your inspection money good bye.
MonkeyBiz is offline   Reply With Quote
Old September 18th, 2012, 04:52 PM   #6
Rainbird1099
Titles are over rated
 
Join Date: 03-16-06
Location: Highland
Posts: 1,271
iTrader: (9)
Mentioned: 0 Post(s)
Send a message via Yahoo to Rainbird1099
Default

I called the county, and the firm representing the bank in the forclosure auction. I found that you need a cashiers check for the minimum (or starting) bid amount.
The starting amount is determined by what is owed on the house; for example if there is a primary mortgage for $332,000, a second for $92,000 + any outstanding taxes, the auction will start at that amount.
Rainbird1099 is offline   Reply With Quote
Old September 19th, 2012, 02:58 PM   #7
TJJEEP
Senior Member
 
TJJEEP's Avatar
 
Join Date: 11-08-05
Location: Orchard Lake
Posts: 2,842
iTrader: (2)
Mentioned: 0 Post(s)
Send a message via AIM to TJJEEP Send a message via MSN to TJJEEP
Default

I don't see how they would have any buyers. Most houses are upside down, plus you add on the cost of back taxes if there are any and the house is way upside down. If they were not upside do the people would have sold them instead of shortsale/foreclosure.

This could be an example:
House bought in 2006 for 200K.
Outstanding mortgage(s) amount of 190K
House value is 120K
Back taxes 5K

So bidding on a 120K house would have to start at 195k?
__________________
If you're like me you like to talk to things. I'm Gary Busey!!
TJJEEP is offline   Reply With Quote
Old September 19th, 2012, 03:22 PM   #8
SHARPMACHINE
F-U-CANCER!!!
 
SHARPMACHINE's Avatar
 
Join Date: 09-29-06
Location: MONTAGUE MI (BY THE SAND BOX)
Posts: 4,474
iTrader: (25)
Mentioned: 0 Post(s)
Default

I have heard that some foreclosures are going to start going through the county courthouse. I am interested in knowing more about it if someone here has more info.........
__________________
Hay, look at me... I have a signature.....



RIP FULLSIZE4LIFE
SHARPMACHINE is offline   Reply With Quote
Old September 19th, 2012, 03:33 PM   #9
bbaXJ
Yooper In Training
 
bbaXJ's Avatar
 
Join Date: 03-29-06
Location: Fowlertucky, MI
Posts: 4,756
iTrader: (62)
Mentioned: 1 Post(s)
Send a message via AIM to bbaXJ
Default

If this is the Sheriff's Sale auction you're talking about then it's part of the foreclosure process but not necessarily the end or a deal breaker. I bought a short sale house in March that was going through the foreclosure process. It had been on the market since the previous March, the owners hadn't made payments in a long time, and it went into the foreclosure process. It sold at Sheriff's Sale auction in July of last year. 90% of the time the bank buys the house back for what is owed. I don't remember the exact details, but I know that's how it goes the vast majority of the time. Since the previous owners were still living in the house, they had a year after the Sheriff's Sale before they had to be gone. So it would have been July of this year before it was fully foreclosed and emptied. My short sale went through, I got the house for over $70k less than was owed(and what the bank bought it for at the Sheriff's Sale), and I was moved into the house in the beginning of March.
bbaXJ is offline   Reply With Quote
Old September 19th, 2012, 05:24 PM   #10
RyeBread
Catch the wave
 
RyeBread's Avatar
 
Join Date: 11-08-05
Location: Fenton
Posts: 7,946
iTrader: (2)
Mentioned: 0 Post(s)
Default

Quote:
Originally Posted by TJJEEP View Post
So bidding on a 120K house would have to start at 195k?
correct. that's why the overwhelming majority of houses that are in arrears end up as REO properties on various bank's balance sheets until they can either offload them to a subsidiary for disposal or farm them out to a contracted service.

back in the day, when zero down, interest only loans were a "sounds too good to be true" scheme and people actually had to put down a serious nut to purchase a house, and property values were increasing modestly every year one could find properties now and again at auction at Sheriff's Auctions that would sell for more than the balance owed.

The bank would deduct various fees, and the overages were technically supposed to be remitted back to the defaulted borrower.

Similarly to vehicle repo auctions. Again, back in those days my best friend's Dad died - his 3/4 ton truck had a balance due of something like $8k. The credit union repo'ed it during the probate period (Scotty surrendered it with the keys) - it was auctioned for $19k and the balance minus some fees was remitted to the estate.
RyeBread is offline   Reply With Quote
Old January 7th, 2013, 07:07 AM   #11
marshall
locally famous
 
marshall's Avatar
 
Join Date: 02-12-11
Location: mayville MI
Posts: 2,990
iTrader: (4)
Mentioned: 0 Post(s)
Default

i have a house that i have been renting for 5 or so years, always getting dirtbag renters. i said screw it after the last renters got over $2000 down and am letting the house go back. just got my notice yesterday that house is to be auctioned on tuesday at the courthouse, sounds like there is no need for me to attend?
marshall is offline   Reply With Quote
Old January 7th, 2013, 03:20 PM   #12
RyeBread
Catch the wave
 
RyeBread's Avatar
 
Join Date: 11-08-05
Location: Fenton
Posts: 7,946
iTrader: (2)
Mentioned: 0 Post(s)
Default

Quote:
Originally Posted by marshall View Post
i have a house that i have been renting for 5 or so years, always getting dirtbag renters. i said screw it after the last renters got over $2000 down and am letting the house go back. just got my notice yesterday that house is to be auctioned on tuesday at the courthouse, sounds like there is no need for me to attend?
no need for you to attend. even if a private party buys the house, you will still have redemption rights (With heavy interest accruals) should you wish to for some reason try to keep it.
RyeBread is offline   Reply With Quote
Reply
Great Lakes 4x4. The largest offroad forum in the Midwest > General 4x4 Stuff > The Pub

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -5. The time now is 05:50 AM.


Powered by: vBulletin, Copyright 2000 - 2012, Jelsoft Enterprises Ltd.
User Alert System provided by Advanced User Tagging (Lite) - vBulletin Mods & Addons Copyright © 2014 DragonByte Technologies Ltd. Runs best on HiVelocity Hosting.
Page generated in 1.14356 seconds with 57 queries