Auctions Cancelled
I'm a newbie. I just went to observe my first auction today. There were 2 scheduled and 2 cancelled. According to another investor that I met there, this is due to the owners declaring bankruptcy, and I was disheartened to learn that this apparently this is almost always the case. So what happens to these homes after bankuptcy? When do they go up for sale?
Depends on the terms of the BK The home might not sell under some terms an agreement is reached and they keep the property (with different payment terms, or the holder takes the property and sells it) It is not uncomon for properties to be held up for months. I always call the attorney who is holding the sale the morning of or late evening before to see if the sale is still on. Basially anything can happen up until the minute of the sale I have even seen deals made at the sale. The more valuable the property is the more interest there will be in bidding and securing the property. Rembeber the sale is all about the lender or mortgage holder getting their money they don't really care who from or how that is achieved
In my area when a property goes up for auction. The only way I show up is if the people are moved out of the house. When they file a BK this is done to KEEP the property. They make a deal to pay a 3rd party the money who monitors the payments to the bank. I have seen many people save their house and weather the bad times and I've seen many people lose their house. But if I were you I would make sure the people are meved out of the house and there is a BIG lock on the house.
Better luck next time
Lori
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