After auction at courthouse on foreclosed home

[techugagrad]

Originally Posted by ehoez

Example.

$200k house
Mortgage $195..

at auction, they will try to ask for $195k

in this economy, no one will bid $195k.. so bank will win its own auction @ 195k
so bank buys the house itself for 195k. and its the new owner of the house..

Not exactly. Nothing requires the bank to ask for the payoff as the minimum bid. In better times, the bank will ask for the payoff because, otherwise, they could try to sell it for more as a bank-owned property. Because of economic situation, banks are starting the minimum bids at significantly less than payoff. Thus, if it does sell at auction, they avoid hassle.

I ended up buying my house as a bank-owned property. I negotiated for the purchase price knowing what the bank was willing to accept at auction, and then I added the realtor commissions. I ended up with a big discount over the asking price.

[hounddog1]

I can tell you what happened to my daughter. Her house was sold on the courthouse square yesterday (10/5/10) in Covington, GA. She moved out of the house on 10/5 also. She went by on 10/6 to get the rest of her property and the locks had been changed. So she had no correspondence from the bank, just change the locks. GMAC has to be proud!