Sherrif Sale Expert-Help!!!
Hi all:
The sherrif sale is next week. I am talking to a bank about a short sale. There is a 2nd mortgage and we just don't have time to work it out. The bank says you can bid at Sheriff sale to wipe out all junior lien. The first mortgage is 72k. The Bank rep said they will bid up to 40k. IF I want it, I can bid 41k to have it. If 72k is owed on the mortgage, how can anyone bid 41k to have it? It doesn't make sense to me. It seems the bank's rep doesn't know what he is talking about or I didn't know better. Any input is appreciated
In my area the bank is the only one that is allowed to submit a written bid. Normally the bank does not attend the auction but rather submits a written bid of the price that they are willing to walk away from the property at. If the Bank rep has indicated they will bid $40k, then you indeed can bid $40,100 or such. You must follow your county's way of doing things and you will likely have to have CASH to pay at the auction once you win.
Depending on your numbers you may consider paying off the first mortgage and shorting the 2nd. Junior lienholders can usually be shorted within 24 hours.
If you are interested in bidding you will want to take a good look at the property and have your title work done beforehand.