Novice Needs Help With Foreclosure In NC
Foreclosure auction date is set for September 3rd. The real estate agent says the property is out of the owners control?? Who do I need to talk to about obtaining the property before it reaches auction. The owner or his lender? I know how much is owed on first mortgage and I am pretty sure second mortgage was satisfied (I need to research this further). Is it best to make an offer prior to auction that covers first mortgage balance or should I wait till auction and bid or wait and see if property becomes bank owned and then make an offer for less than was actually owed on first mortgage.
I am sure more information is probably needed. Just let me know. Any help would be greatly appreciated.
Is this property listed with a Real Estate Agent? If so, then I'd skip to buying at the courthouse steps since the Agent will want FULL RETAIL value.
You would speak with the owner about obtaining this property.
You can try all three options! I always have more than one scenario when purchasing investment properties. Sometimes one works out while another one doesn't. Each deal is different!
Make the owner an offer. If it isn't accepted ...
Buy it for cash at the courthouse steps!
If you decide not to buy it at the courthouse steps and no one else bids, it goes back to the bank. You can buy it as an REO. Sometimes you get a deal on REOS and sometimes you don't.
Good Luck!
Mrs. Meltzer
Mrs. Metzer
I am seeking this property for myself.
The property is listed with a real estate agent. Can I not make a low ball offer to them to cover what is owed on property (or less?) instead of going to auction?
From what I have read that is what the bank will bid at auction. The property has been listed at full retail for 6-8 months without selling.
What should I expect to pay at the courthouse auction?
What is a good deal on an REO? Is it usually less than balance owed or balanced owed plus taxes, etc.
The owner moved out last December and has another house in town. Should I talk to him or to the bank he owes as far as working a deal on the property. How does one confront owner? What do I ask?
Thanks so much for your advice
Scott
smcgee123
Of course you can make any offer you want! The RE Agent is under obligation to present it to the homeowner.
The minimum bid starts at what is owed against the property along with foreclosure fees.
Every house is different as to what is paid at auction. It depends on which investors are there on that day and how they are feeling.
Each REO is different, you have to just make an offer. Sometimes they will accept a low ball offer. Sometimes the property will sit on the books for months over valued.
Ask the owner if he/she will sign the house over to you. You can take over the mortgage (subject to) and make all of the back payments. You will also save the owner's credit. However, you'll still have to pay the RE Agent his/her commission.
With a foreclosure date of Sept. 3rd, there is not enough time to do a short sale. I doubt the mortgage company will even speak with you. In about 3 weeks, they will either get their money or the house.
Hope This Helps!
Mrs. Meltzer
Hello,
I Live in NC and have been doing some forclosure deals with HUD and VA. Make sure you do not offer too much. The market here is not hot and you should be able to lowball a good price. Its a buyer's market here.
dgtop
What offer would be to much? The foreclosure papers state the owner owes 309K, back taxes are 2k from 2002 and 5K due at the end of this month. Should I also figure in payments that have not been made since 12/2002?
Mrs. Metzer
From your experience would you expect other investors at the auction for a house in this price range? I would think if anyone else is there bidding it would be someone like me trying to get a good deal on a house they plan to live in.
Thanks for the advice
Scott
Each situation would always be different.
I will say you need to run your comps before you make an offer at all, either to the agent or bidding at the court house.
If the house would give you enough equity and it's good enough for you to live in, I will say go for it.
What is profitable to an individual who wants to buy a house as his residence might not be profitable to an investor.
Other investors can only give you ideas or different scenarios, you have to figure out what is best for you.
All the best,
Blessedame
blessedame
Run your comps? What does this mean? I am guessing research and find out what comparable properties in the neighborhood are selling for. Is this what that means.
Thanks
Scott
Hey Scott. You can find comps online. If you live in the Raleigh/durham area I can give you some websites. Just pm me.
Comps stands for comparables.
This means that a house in the same area, the same size would sell for the same price.
Sometimes, there will be no one bidding against you.
Other times there will be investors bidding against you. They may pay more, they may pay less. That is why it is called an auction.
Hope This Helps!
Mrs. Meltzer
Mrs Meltzer,
Your post of 7/30 mentions the buyer will still have to pay the agents commission. That is usually the seller's obligation and if he is geting no money out of the deal...... what is the agent to do??
'Blood & Turnip' comes to mind.
I went to a foreclosure sale on the court house steps, here in the county I live in, a few months back to bid on a property that has been empty for nearly a year and a half. I was shocked that a company from another state bid double what it was worth. My question is this, that company knows it isn't worth that much. Did they bid out everyone knowing that no one else would bid against them so that they could later back out and let the bank take possession of it so that they can later go back and make a bid half of what it is worth? Hope I'm not confusing anyone on this but this is the problem that I am seeing on practically all of these foreclosure sales. To be honest its really ticking me off. No one stands a chance against huge corporations like that. null