Profile picture for Leslie Ford

Has anyone had luck at the foreclosure auctions?

It seems like the lenders always bid on their own properties.
  • August 31 2011 - Hilton Head Island
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Answers (3)

Profile picture for MalleyWarren
i have a friend that bought something once, but it was a run down house that went into foreclosures because the owner died and family let it go. It probably had less than 5 years left on that mortgage- they bank had their money by then, other than that, the auctions are just a formality for those banks to do their thing.  He spent several thousand fixing it up and it probably isn't worth what he has in it.
  • August 31 2011
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Short answer is no. Normally, the banks will have representative at the auction to drive the bidding up to what they are owed. Unless someone is willing to pay more than this, the bank will acquire the property via the foreclosure process and eventually list it.

I looked at & attended the auctions in my area but found buying foreclosures was better for me & my clients AFTER it is listed.
  • August 31 2011
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Profile picture for Connie Klemme
they frequently do show up and bid on their own and even run it up to a huge price before they would give up,  then they collect the insurance etc and market it as an REO (or sell the loan to an REO company).

what I have noticed is that if the loan is old enough that the person losing the house had many years into the loan, they seem to let those go at auction prices. I've got no real data to back that up but that does seem to be the pattern.  I would imagine there is some forumla they use for deciding to bother or not.  they key is to expect the suits to be at the auction everytime and have plan for how high you'd go. (or that's what I tell my customers- then we watch the MLS for the home to get listed later and they FREQUENTLY sell for less than the auction amount).
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  • August 31 2011
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