Formula For Figuring Price Owed On House At Sheriff Sale???
Hi,
This is probably a unfair question, but I need to know.
Is there a Ball Park Formula, you can kind of go with when trying to figure what is owed on a house?
Sample: At a sheriff sale if a property is appraised at 50,000 and 2/3 would be about $33,340, Can you kind of guess what is owed on the house?
Just thought someone might be able to come up with a ball park formula to help me. Thanks
If you live in and want to bid on a property in a jurisdiction that presets the Sale price to % of fair market value, perhaps it isn't essential to know what's owed...
To know what's owed, you would have to know if there is a mortgage, or two, or even three mortgages against the property. You would have to know if there are any property tax liens, IRS liens, or other liens that attached to the property.
I don't know of any shortcuts... other than to ask the Homeowner, or find out the judgment amount.
In my area, if you call the Attny for the Bank 24hrs before the sale, they typically give you the reserved auction price.
However, when evaluating a property, I typically use a 65-70% rule of thumb. That is what I am seeing the banks start the auction prices at in my area.
You may want to attend a couple auctions and see what the going rate is. Also, watch to see who the lenders are and see if you can make any correlations as to their policies.
tbud
In reality, who cares what the payoff is? You should go in knowing what your maximum price/offer would be. Never ever go over it and I would certainly start lower than the "last best"
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