Forclosure suprises?

[Yetti]

so the wife calls me today about a couple of houses she had allerts on from a web site that just went forclosed. so we drive by to check them out and the one had a couple trucks in the side drive. so I went to the door and there was the owner still living there! him and his wife were watching TV. I knocked on the door to ask if I had the correct house and he was kind enough to tell me I had. so he went on to tell me its supposed to go to auction and he is hoping to get it back. didn't make any sense to me. the other thing is he is a landscaper with one of them HUGE tree spades. he is digging out all the trees and stuff he put in. the yard looks like a mine field.

[wpage]

Whoa! digging up the trees?

[mikejr]

Its typical....people will take everything AND the kitchen sink. I specialize in marketing foreclosure properties for bank. Have sold well over 2000 of them in my career. I've seen prior mortgagors take everything, siding, windows you name it. Just to "screw" the bank. Of course they are the ones that didnt pay their mortgage....guess i dont understand that mentality. I was always taught if you create an obligation, you pay it.

[Mr_Pat]

I have a question....

I went to www.hud.gov and selected my state (WY) it then took me to a new site with houses listed that HUD posses. I was looking at this:

http://hud2.towerauction.net/cgi-bin...=591093900&off ice=e7&state=WY

Now my question I see this:
Price: $159,000
As-Is Value: $159,000


Now is 159k the min you have to bid or is that just what they value it at and you can bid what ever on it? Someone told me you can bid what ever you wanted on it. So if I was just going to put a bid ok 80k for the hell of it and I was the only one to bid, I would get it??????

[Karsun]

I agree they should pay what they owe but I'm wondering about something I heard. Supposedly there's a lot of forclosures right now cause people got great ARM rates and then when it came time to change it, some people's payments tripled. So perhaps they were paying $1000 per month and could afford it and now it's $3000. I can understand wanting to take all you have cause I can't imagine losing your home. I always said that before I allowed a vehicle or my home to be forclosed that I'd do whatever I could to keep it, even if it meant working 4 jobs or whatever. I think I'd walk the streets first, you know? Even before we had some money (we're not rich by any means but do make more than we ever have) we never had anything repossessed or forclosed. I do feel sorry for some of those people. Like I said, it's gotta be one of the most awful things to lose your home.

[CO Hummer]

Originally Posted by Mr_Pat

http://hud2.towerauction.net/cgi-bin...=591093900&off ice=e7&state=WY

TOWERAUCTION.NET?

I knew he'd find a home someday.

[Boss Hoss]

Originally Posted by Karsun

I agree they should pay what they owe but I'm wondering about something I heard. Supposedly there's a lot of forclosures right now cause people got great ARM rates and then when it came time to change it, some people's payments tripled. So perhaps they were paying $1000 per month and could afford it and now it's $3000. I can understand wanting to take all you have cause I can't imagine losing your home. I always said that before I allowed a vehicle or my home to be forclosed that I'd do whatever I could to keep it, even if it meant working 4 jobs or whatever. I think I'd walk the streets first, you know? Even before we had some money (we're not rich by any means but do make more than we ever have) we never had anything repossessed or forclosed. I do feel sorry for some of those people. Like I said, it's gotta be one of the most awful things to lose your home.

In most cases youll not find the payment has tripled but it has increased...more along the lines of the $1,000 payment going to $1,300 or so. Many people entered into ARMs under the assumption their property would continue to increase in value and they would simply refinance down the line and keep a similar payment and roll in closing cost so there is no"out of pocket" expense. In the mean time the real estate market has become soft and the house will not appraise out for teh existing mortgage much less roll in closing cost and they are stuck like chuck. This same person may very well have purchased another house or two in the mean time speculating they would hold onto it for a couple years, then sell for a large profit. Now the problem is really compounded as this house payment has adjusted as well and they are either unable to rent the house out or are taking less than in previous years for rent. In addition, according to the current market value they have several hundred thousand in negative equity! Ok, now what? Im seeing a fair share of this.


For the good news; housing prices are beautiful and conforming loan rates are at their best in over 2 1/2 years!!!!!!!!

[Boss Hoss]

Originally Posted by Mr_Pat

I have a question....

I went to www.hud.gov and selected my state (WY) it then took me to a new site with houses listed that HUD posses. I was looking at this:

http://hud2.towerauction.net/cgi-bin...=591093900&off ice=e7&state=WY

Now my question I see this:
Price: $159,000
As-Is Value: $159,000


Now is 159k the min you have to bid or is that just what they value it at and you can bid what ever on it? Someone told me you can bid what ever you wanted on it. So if I was just going to put a bid ok 80k for the hell of it and I was the only one to bid, I would get it??????

This is where a good agent who specializes in foreclosures comes into play. Often times this is FREE for the buyer. Im sure MikeJr would be glad to interview qualified agents in order to refer you to an agent suited to handle your needs.

[DRTYFN]

Originally Posted by Yetti

... with one of them HUGE tree spades.

[mikejr]

Originally Posted by Mr_Pat

I have a question....

I went to www.hud.gov and selected my state (WY) it then took me to a new site with houses listed that HUD posses. I was looking at this:

http://hud2.towerauction.net/cgi-bin...=591093900&off ice=e7&state=WY

Now my question I see this:
Price: $159,000
As-Is Value: $159,000


Now is 159k the min you have to bid or is that just what they value it at and you can bid what ever on it? Someone told me you can bid what ever you wanted on it. So if I was just going to put a bid ok 80k for the hell of it and I was the only one to bid, I would get it??????

You are correct in that you may bid as much as you want. However, that doesn't mean that HUD is going to take an offer of $80K. I've not done a HUD property in a while, but if I recall correctly they don't negotiate, you place the offer and its either accepted or rejected. Typically on the HUD site they will have a list of approved brokers that can do the paperwork for you.

A common misconception about foreclosures...which is kept going by the people on TV hocking their CD's and DVD's on how to buy them for pennies on a dollar....is that you can by them at a huge reduction off the list price. The foreclosures are priced at the market value in the present condition of the property. Sure there are banks that challenge the market to try to reduce their loss on the property, but most of them arent going to give the property away.

A good buyer agent can coach you on what they feel the property is worth and perhaps a range to make an offer in. But that doesnt mean a seller is going to take that offer. Best thing to do is throw in an offer and see what happens.

[Yetti]

ok, heres one for you. my neighbors house is listed as a "Auction property" on the forcloser site. when it goes to auction who can bid on based on the real dollars owed? and where do I find a list of auction sites to search for it?

[mikejr]

Originally Posted by Yetti

ok, heres one for you. my neighbors house is listed as a "Auction property" on the forcloser site. when it goes to auction who can bid on based on the real dollars owed? and where do I find a list of auction sites to search for it?

Who's site is it on? Many times the f/c bank will place a property on Realtybid.com or Hudson and Marshall. Anyone can bid at the auction. Most auctions will have a reserve.

Also I dont think you will want to bid on the "real dollars" owed since 99% of the time the f/c bank is losing their shirt on these deals. By the time the factor in the unpaid balance, interest, penalties and attorney fees just to get to the f/c, then factor in holding costs, maintanence and eviction costs, the banks are taking a pounding on these properties.

I'd try either Hudson and Marshall, Realtybid.com or Williams and Williams as far as common auction sites to find it.