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I was just wondering if a large, small or practically 0 percentage of foreclosed homeowners are trying it. Sure it's unethical, but who these days has any ethics? The foreclosed are feeling that they got shafted by the banks; they know the banks are run by unethical people, so they likely feel no remorse for doing it. And don't forget the looming gargantuan crisis of mortgage fraud precipitated by the Massachusetts Supreme Court ruling in the Ibanez case in which the banks that foreclosed on a huge number of them are probably not the real mortgagor. I don't condone anyone doing this, not because of the ethical question (I don't blame the honest foreclosed for feeling cheated) but because if everyone followed this course of action it could cause a massive earthquake in the RE market.
(I don't blame the honest foreclosed for feeling cheated)[
/quote]
What are the "honest foreclosed", and how did they get cheated? They borrowed money, and agrees to pay it back in a certain time on a certain schedule. When they didn't pay, they lost the collateral they put up for that loan. Regardless of how many investors bought into that loan, or who now holds that document, and whether it can even be physically located, how was the non paying borrower cheated?
Well, it's true that many homeowners took advantage of the "system" by taking out loans they knew they couldn't afford, but there's also a sizable percentage who were out-and-out lied to by RE personnel, loan officers, mortgage originators, etc who duped them into believing they could afford the loans, and who actually changed the numbers on the applications in secret so the borrowers could qualify and the brokers could collect their commissions. Most of the banks knew all this was going on, but as long as they could continue to bundle those mortgages and sell them as CDO's and make monstrous profits they weren't about to kill the goose so they looked the other way. There's enough blame to go around, that's for sure.
Not to mention that many banks advised underwater homeowners to stop paying their mortgages while their Mortgage Relief Act applications (or whatever the hell that bill was called) were processed and then sent them default and foreclosure notices immediately afterwards---tricks like that to get the homes away from the homeowners.
Its not like the previous owners would not be competing against anyone else for the house. If it was a good deal there would be others interested. If it wasn't a good deal then they would be paying too much anyway.
What is the law that says a property owner can't buy his own property at auction? I'd like to see the Statute. Lots of people default on paying real estate taxes and then buy the property back at tax deed auctions. It clears the title of any liens. It's risky because someone could bid against you and buy the property. But meanwhile, they got rid of their mortgage. I see it all the time and it's not illegal. But personally, I'm glad to see people defaulting on their mortgage. I wish everyone would do it.
Yes, there are laws in place to prevent it. The foreclosure auction has to be an arms length transaction.
You know, I absolutely believed my statement to be correct when I made it, but after doing some research, I cannot find any law that says it would be illegal to do what the OP asks. Perhaps I was mistaken.
I don't see how this is fraud. I think it is possible to pull this off if the person has the funds to re purchase the house. I would say the number would be pretty small since when most give up a property they have lost all interest in it. I know personally of account where someone gave back a home and has been pestered for the past year from the bank asking if they want the house back for a reduced cost.
What is the law that says a property owner can't buy his own property at auction? I'd like to see the Statute. Lots of people default on paying real estate taxes and then buy the property back at tax deed auctions. It clears the title of any liens. It's risky because someone could bid against you and buy the property. But meanwhile, they got rid of their mortgage. I see it all the time and it's not illegal. But personally, I'm glad to see people defaulting on their mortgage. I wish everyone would do it.
Consider this a THROW DOWN! I am flat going to call you some one with their pants afire if you cannot post something to substantiate this!
I have been doing do this too long to thing I have missed some magical way to make liens disappear and scoop up property. I have been a number of auctions, both for tax sales and foreclosures and the terms are such that no sane homeowner could ever expect to bid on their own home and settle the debt unless the place is so trashed that they would better off leveling the place.
Lately I have seen some folks that are so close to unstable in places facing foreclosure that I think they might go over the edge. One person I ran into at a showing I actually felt like notifying the authorities that he might be capablemof doing harm to himself or others. I actuallly looked up a relative if his through a shared connection to check and see if he might become violent...
Go ahead, encourage reckless behavior, the media sure loves that.
SHOW ME PROOF OR KNOW THAT EVERY POST YOU MAKE WILL BE SEEN AS PART OF A DELUSION, pants are smoking hot...
I've reviewed this further. While there is nothing in NJ (I called the Sheriff's foreclosure department) to legally prevent a homeowner from bidding and winning the foreclosure auction on his own home, it seems a foolhardy thing to do. The foreclosing bank is represented at the auction, and will bid on the property until it gets up to a price they are willing to take. Once the price gets up to a satisfactory level, and you add in the costs & commission to the Sheriff, in most cases it would be cheaper, and less of a hassle, to simply pay the mortgage. Especially since buying it at auction means you have to come up with cash for the full purchase price within 30 days.
After a tax deed auction, one would have to quiet the title before it is perfectly clear but according to Florida law any liens except for governmental liens, are no longer valid. The tax collector notifies all lienholders of the auction and if no one steps forward to pay the taxes, then they no longer have a claim. Period. The judge awards immediate possession. Not even the property owner can redeem it. It is different for mortgage foreclosure auctions, of course. Any owner would still have to settle with the lender after they win the bid to remove the lien. But in Florida, the owner has a right to redeem anyway, so why not use that card instead? Regardless, it's a good idea to bid against, it might provide leverage for the owner if the lender doesn't have a valid claim anyway. Like if they foreclosed without the note or with one of those robo-signers affidavits and the judge was slack in enforcing the correct laws, which we see a LOT here in Florida. I'm on the side of the people and not the fat cat corporate vampires. The sheeple don't know how the banks are stepping all over basic property laws. To them if you don't pay the mortgage you're the criminal. One day they'll see the light, I just hope by then it's not too late.
Quote:
Originally Posted by chet everett
Consider this a THROW DOWN! I am flat going to call you some one with their pants afire if you cannot post something to substantiate this!
I have been doing do this too long to thing I have missed some magical way to make liens disappear and scoop up property. I have been a number of auctions, both for tax sales and foreclosures and the terms are such that no sane homeowner could ever expect to bid on their own home and settle the debt unless the place is so trashed that they would better off leveling the place.
Lately I have seen some folks that are so close to unstable in places facing foreclosure that I think they might go over the edge. One person I ran into at a showing I actually felt like notifying the authorities that he might be capablemof doing harm to himself or others. I actuallly looked up a relative if his through a shared connection to check and see if he might become violent...
Go ahead, encourage reckless behavior, the media sure loves that.
SHOW ME PROOF OR KNOW THAT EVERY POST YOU MAKE WILL BE SEEN AS PART OF A DELUSION, pants are smoking hot...
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See it all the time, huh? WHERE?!
