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

Comments(3)

  • TheShortSalePro28th July, 2003

    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.

  • tbud29th July, 2003

    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

  • Stockpro9929th July, 2003

    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"
    [addsig]

Add Comment

Login To Comment