Found My Dream Home - Need Advice To Get It!
There is a vacated home in the county I live in (GA) that I'm VERY interested in to buy for my personal home, but all the research I've done seems to add up to a shady deal - The home is a very nice large older home that was bought & completely remodeled for the purpose of reselling,, but he was asking too much and no one bought it , so nothing has been paid on the loans. The county clerks office showed that he took out an initial loan at a small local bank for $450,00 & then eventually sold that to a mortgage company & borrowed $725,00 on the home & land, but at the tax office it states that the tax assessment amount for the home & land is $375,00. How could he have ever gotten a loan for these amounts in the first place? I called the mortgage company and they said it would be going to auction soon, but how much would they be asking for this home ( minimum bid) won't they have to take a loss just to recoup anything for this loan because this home will never sell for the amount of the loan - Please help with any advice you may have & SORRY this was so long!!! [ Edited by sescoe on Date 09/10/2003 ]
your numbers are funny where do the,,,,,s go .
Go to the county permit department and see what construction has been permited on the property. Second, the assessed value is not indicative of true value, mearly a term used by the county to assess a tax on the property. Like a base price. The county does not do an appraisel on a new construction they use a base $/Sq. Ft. When someone does new construction actuall cost and assessed value can differ greatly. So what the loan is means nothing to the assesor what does mean something though is when the land is sold then there is a new assessed value. So I would come up with comps. in the area and search MLS to get a value for the land and on the improvements.
If you could contact the owner, you could try to do a short sale.
Otherwise, you could very well bid at auction. It is not unusally for the bank to take a loss. If you can be sure to inspect the property well. YOu con't want any surprises. Did he get permits for his "remodeling"?