My First Auction. 8 Props., But No One Bid. Why?
Hello, all,
Ok. My partner told me that at the sherif's auction, there were 8 properties. The guy came and said what the beginning price was. No one bid. He moved on to the next one. He did this 7 more times; again, no one bid.
My question is this: Will these properties continue to go to auction util a lower price is reached and a bid then given?
Thanks,
OnTheWater 
PS We're closing on two props. in a week, and my other partner is closing on another two! I just love this stuff!
Go directly to the bank holding the mortgage.
Lets be simple. Lets say they asked 100k for the judgement amount. Ofer 52k. they say no, they say no, if they say yes, you have a heft profit!
[addsig]
On The Water,
Did the bank not even bid?
Maybe there are no investors over there in west bend to scoop these deals up? Could be your gain.............? Have you checked the price they are being auctioned for vs. any comparables?
We could go to the bank, directly, too.
I'm not sure if the bank was there to bid as my partner was there just to learn how the auction process works, and I wasn't.
During the biding, if they asked for an opening bid of 100k, could we have said, "we offer 50k", or is that not the way auctions go?
Thanks for the help.
OTW
Hi OnTheWater,
That is a good thought, unfortunately that is not how a Sheriff sale works.
If the first mortgage is foreclosing and the balance due on the first is $122,000, that will be the minimum bid, or the bank will buy it back at that amount. Even if their is a 2nd or 3rd mortgage in the example above, the bottom line is that the first will open the bid for the min amount due them, if the bid goes up, the extra dollars then trickle to the 2nd, 3rd mortgages, etc.
Hope that helps!
BAMZ
[addsig]
Yes, that does help. Actually it makes it clear. Very clear.
Ok, if the bank is owed that money, they'll take it back as REO, and they'll try to sell it?
So, at 112 they may, after a while, sell at 50, 60 or 70k just o get it off their books, taking a loss?
Thanks,
OnTheWater
OTW:
you got it exactly. That is the reason most banks will short sale property before it goes to auction...they know they are upside down, and want to get rid of it ASAP
[addsig]
Hi OnTheWater,
I'm not saying that it is impossible, but REO's are less likely to discount to investors. Once it reaches the REO stage, they will in many cases list it with a realtor at retail price.
Just remember that just because it foreclosed, doesnt mean that the bank will lose money. They may even make money by selling it for more than they bought it back for.
BAMZ