Auction Power Guide

There is a home I’m intersted in purchasing and it goes up for auction tomorrow 2/5/13. However, the residents are still living in the house. How long can they live there after the auction? When can I get in to look at the house?

the only way you would be able to get into the house to look at the house is if the current owners would allow you into the property.

Until after the foreclosure sale, the current owners are still the owners.

Once the auction is complete the property then would become the highest bidders property or if there is no higher bidder then the bank would take the property as collateral or a Real Estate On Hand (REO) of the bank.

Even with the property changing hands at the auction, it would take several business days before the proper deeds to be signed and recorded at the county recorder’s office where the property is located, before the new owner would have legal ownership of the property.

It would be difficult to determine when the property would be assigned to a real estate agency for sale. Each mortgage lender have their own procedures as to when they would assign their REO property to a real estate firm.

You might consider going to the auction and making the opening bid. Keep in mind that the lowest bid would be balance of the mortgage loan as well as any and all foreclosure fees. This bid might be more than the value of the property.

You could find out the mortgage lender and address that own the property at the foreclosure bid from the auctioneer.

You could send a bid along with a check for a deposit. At times the mortgage lender might accept this type offer.

Failure of the mortgage lender to accept your mail in offer, you would be required to wait until the property is placed for sale through a local real estate firm, who will eventually place a for sale sign on the property.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

I believe that an investment company won the auction and then failed to close the deal within the specified time. They were trying to flip the house and I don’t think they were able so they forefitted the bid deposit. The auction was on June 12 and there still are no recorded documents according to the county recorder’s office. Any advice on how to get to the bottom of this. I have moved on, but I just want some closure as to how it all played out. Thanks.

You can call the county recorder’s office or the clerk’s office and ask them to tell you who currently owns your property, as well as any liens on the property right now.

That would be the easiest way, since the county in which the property is located keeps all of the records affecting the property. If the foreclosure went through but there was a problem with the sale, they will be able to give you that information.

But if you are right and there are still no documents that have been recorded to show a transfer of ownership, then the house may have to be auctioned again at a later date. If the high bidder could not pay, the house may just go back to sheriff sale.

In the meantime, you might still be the owner of the property, just as you were during the foreclosure process. It is usually the confirmation of the sale that transfers final ownership — if that hasn’t been done in your case, you may still own the property for now.

Hope that helps.
ForeclosureFish

Houses for sale at a forclosure auction, they ask for down payment immediately, the remaining with 24 hours. Where do youget the funds for that immediately?
The details are as follows: 10% of successful bid immediately at conclusion of auction, balance by noon the next business day, both by cashier’s check. Assuming I have the down payment, how do I secure the rest of the funds before the auction starts? Not enough in home equity so forget that. Any thoughts?

When you are purchasing a property through the foreclosure auction, the person conducting the auction has to verify the funds prior to the auction.

At the auction you must have cash or a cashier check and that’s the bottom line. There is no down payment, You have to have the full bid price in order to be successful at the foreclosure auction.

There is no 24 hour period in order to get or secure the funds. If you don’t have the funds at the auction you can not bid or be allowed to bid on a property.

I hope this has been of some use to you, good luck.

"FIGHT ON"