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Posted by Hoosier Man1 on 11-19-2013 03:17 PM:

Ot Forclosure Buying at sheriff sale

I'm really wanting to buy a home at a sheriff sale this Friday. The property is all paid up on everything and has no liens against it or back taxes.

The home was apraised at 99,000. The sale must bring 2/3rds of that ammount.

Here is my problem I found out the ones who owned the property still owed 210,000 on the loan. How likely will the bank out bid me on something like this?

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Posted by josh on 11-19-2013 03:28 PM:

Depends....

The vast majority are purchased by the lender.

I wouldn't get your heart set on it.....there is usually a lot of things at play.

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Posted by Chris Herring on 11-19-2013 03:42 PM:

Myfriend bought one, they do it by bid, a lawyer usually has an initial bid by the lendor so that no one gets it for too cheap. He went and bought it for $100 over the opening bid, which was about 80% of value. The lawyer who placed the original bid dropped it off and was not there to counter. The bank contacted him the next day and offerred to purchase his rights for $1000 profit, he declined because he really wanted the house/property.

Unless I am mistaken, the former residents are still on the hook for the difference in purchase and owed amount. Most file bankruptcy to eliminate the debt and avoid liens on other property and judgements which would reduce their paycheck.

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Posted by Redneck Mafia on 11-19-2013 04:22 PM:

We bought one for $1 higher than bank bid . The bank will send a rep - usually an attorney to the sale - we got lucky they didn't try to out bid us . Many won't they just want it off their books . I don't know how it will work with them owing so much more than appprasial value . The next year I did have to pay the back taxes but still got a good deal .

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Posted by Hoosier Man1 on 11-19-2013 04:29 PM:

Good info guys keep it coming. Trying to learn all I can.

Posted by A.Kath on 11-19-2013 04:58 PM:

I purchased a property at a sheriff sale about a year and a half ago and there is a lot of legal mumbo jumbo to sort thru and each state is different.

In the foreclosure notice there should be a phone number of the attorney office you can call 10 days before the sale and they should be able to give you the bank's opening bid. The bank or their representative will not bid again. I believe they do their own appraisal of what to bid.

Also ask the attorney or sheriff about payment on the day of sale, in MN you have to have cash or cashiers check.

If you are the successful bidder, you can't take full ownership of the property until the 6 month grace period has passed. This is were the owners can pay you the same amount you bought it for and it goes back to them. I don't like this part of it but that's how it is. The owners can still live there during this 6 month period and they can trash the place and there is nothing you can do. Thats a big risk. In my case the house was vacant and needed to be torn down anyway so risk was minimal. If it is vacant, less than 10 acres, and non-agriculture you can get the redemption period reduced to 5 weeks.

Posted by josh on 11-19-2013 05:05 PM:

quote:
Originally posted by A.Kath

Also ask the attorney or sheriff about payment on the day of sale, in MN you have to have cash or cashiers check.

If you are the successful bidder, you can't take full ownership of the property until the 6 month grace period has passed. This is were the owners can pay you the same amount you bought it for and it goes back to them. I don't like this part of it but that's how it is. The owners can still live there during this 6 month period and they can trash the place and there is nothing you can do. Thats a big risk. In my case the house was vacant and needed to be torn down anyway so risk was minimal. If it is vacant, less than 10 acres, and non-agriculture you can get the redemption period reduced to 5 weeks.

This is right for MN, but its going to be different in OH.

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Posted by Hoosier Man1 on 11-19-2013 05:08 PM:

We have called the attorney listed and he would not say a word about anything.

Posted by A.Kath on 11-19-2013 05:32 PM:

quote:
Originally posted by Hoosier Man1
We have called the attorney listed and he would not say a word about anything.

That's strange, did he give a reason for not disclosing the information? I called when it was first published in the newspaper and they told me to call back about 10 days before the sale and they would give it to me.

Prior to the foreclosure notice I did some research on the property and found the bank holding the mortgage and I called them directly. They would not say anything due to confidentiality reasons. All they would say is this property is not available for sale.

Posted by Hoosier Man1 on 11-19-2013 05:49 PM:

He would not say anything. lol

This is what worries me. Why if banks set the appraisal rate on a home will they consistantly outbid people who meet that rate in full? I see on past sheriff sales the appraisal rate will be like 88k and you see the bank ended up buying it for 130k. This is not typical but many times the bank will go way over the appraisal rate to keep the house. I don't understand that.

I see banks buy back the majority of homes at forsclosure sales. I believe a few things have a lot to do with this. First you can't even see inside the home so most won't drop 100 or 200k when the inside may be trashed. Second the average person does not have 10% to put down at a sheriff sale. Third NO bank will approve a loan for a sheriff sale home.

Posted by chuck west on 11-19-2013 06:32 PM:

Hoosier I Googled this for you about Ohio laws . Hope it help.

http://www.foreclosure.com/st

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Posted by josh on 11-19-2013 07:31 PM:

Its all about numbers.

The decisions are probably being made by a bean counter in California that has never been to Ohio....Its hard to anticipate what they are thinking.

I would go into it with an open mind, if it works out...great. But don't get your hopes too high.

I have had several foreclosure deals go south for reasons no one could predict....its the nature of that beast.

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Posted by Lance Laymon on 11-20-2013 12:13 PM:

The bank will often buy the property no matter how high it goes. They do this so any 2nd 3rd etc mortgages are off the property. Then they will hold the property for a short amount of time and resale it at a reduced price. Around here you can often buy the property later cheaper from the bank then at the auction. Maybe you will get lucky and the bank rep will be late or forget to show up.

Posted by Hoosier Man1 on 11-20-2013 01:05 PM:

That would be great lance. i'm not counting on it tho lol

Posted by purk on 11-20-2013 02:46 PM:

house

From my little experience the whole process is a scam The bank will have a hired attorney to bid on house . Even though the loan my be insured and along with government insuring loans and giving money to banks in past. It appears to be in best interest of banks to keep houses selling high. If the bank buys house back they will hire a foreclouser relator to sell house. The house will start out at high price. As time goes on which the price of house drops. The bank already has a process on how much price drops over time line. There is always possibility you buy house cheap through fpreclouser relator so hang in there.

Posted by Hoosier Man1 on 11-20-2013 03:39 PM:

Doug and purk thanks for response. I'm just hoping the bank will let it sell for the appraised value just to rid themselves of it and get it off their books.

Posted by hillbilly56 on 11-21-2013 01:17 AM:

don't figure the banks reps are allowed to tell anything about the price of property up for sale the credit union i deal with is not allowed to tell you what the balance of thier repossed stuff i try to get the price on a boat and a truck they had they wouldn't tell the balance on either 1 of them they publish them in the newspaper and take sealed bids guess that way if the item brings more than is owed on it they make more money but like somebody else said all states are differn't

Posted by Randy Tallon on 11-21-2013 05:37 PM:

In Pennsylvania purchaser is responsible for any and all back taxes and liens at Sheriff Sale. There are not many homes that sell at an actual Sheriff Sale due to banks' interest in getting their money. At a Judicial Tax Sale property goes for bid starting at cost. Judicial Sales are sales that are a minimum of 3 or 4 years (not sure on actual time..) in arrears on taxes. I bought my acreage 25 years ago for $657 at a Judicial Sale. No one bid on it thinking it was land locked...it wasn't. Current value of my 1.5 acres tucked 250 feet back in the woods....$30,000. Yea, I got lucky...real lucky. I've worked as a deputy at the local county SO for 31 years and headed the Civil Division at one time.

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Posted by Hoosier Man1 on 11-22-2013 03:56 PM:

Well bank guy out bid us. We went up 30 thousand over the appraised value and he was willing to go way higher.

I just can't figure why they would be willing to spend thousands to clean it all up and let it sit for months and rot. Doesn't make much sense to me.

To top it all off I work for the bank that outbid us.

Posted by josh on 11-23-2013 02:53 PM:

Yup.

My sons house sold at sheriffs sale for 70k.

We bought it later for 36.

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Posted by Hoosier Man1 on 11-23-2013 05:08 PM:

Good info guys I'm going to try to find out who to reach out to Monday.

Posted by River Birch Run on 11-24-2013 01:42 PM:

Trevor, I have been to dozens of these sales here in OH, I can tell you all the little things you need to know to cover your bases. And if the bank tells you know Mon, try back in 3 months. Thats usally how long it takes for them to get there insur. money. They can't do a thing till then. I went to one and had bid 51,000 the bank out bid me. 4 months later the bank had there own auction and the home sold for 26,000. But the neigbors had filed a nusince complant on the property. They didn't disclose that till 5 min. before the auction. So I let it go because I had no ideal what was going on. And I could have bought it and my bank back out on the loan because of the nusince complant and I would have been out the 10% down.

Posted by Hoosier Man1 on 11-25-2013 12:27 AM:

Good info river birch. Sad thing is I can't have anything to do with buying the house because I work for the bank that owns it. So my fiancee has to be the only one on the loan. We were lucky enough to get inside the house a couple weeks ago and it wasn't tore up at all. But the property has tons of junk around it and hasn't been mowed all summer. I'm hoping we can buy it before it gets in a realtors hands.

Posted by Hoosier Man1 on 11-27-2013 05:31 PM:

I guess the house is going to be sold through fanie mae. Is this a good thing or bad thing?

Posted by River Birch Run on 11-29-2013 12:46 PM:

Those houses can go pretty cheep, but that is a gov't program. So poor people can by a house. Basiclly the gov. gives them really cheep loans and pays for like a new roof and stuff like that if needed. The deal is they can't sell the house for so many yrs. Or they have to pay back the money it cost to do that. I don't know how it works for sure when your not going through the program to buy it, i've never checked into that.

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