OfflineI am going to an auction in a couple of weekends. The house I'm interested in is in my target area. It's list is $249K and the starting bid is $89K. So I'm assuming that $89K is the balance of what was owed the bank on this mortgage. Is that a correct assumption?
I'm also wondering...if I correctly understood everything I've read so far, the succession goes distressed owner, pre-foreclosure, short sale, foreclosure, auction, REO (if the house doesn't sell at auction). Is that correct? Because if it is, I was further wondering if it's not just better to wait to see if the bank walks away from the auction with the house and adds it to their REO inventory. If $89K is their bottom line at the auction, but they can't unload it, might they then not be willing to negotiate on the price if they have to take it back? And if that is the case, then is it not better to just skip foreclosure auctions in general (unless there is a real killer deal; some of the houses on the list have a starting bid of $1,000 with lists of over $100K), deal with REOs only and be able to negotiate the price with the lender?
Thanks for any and all input.
HAPPY THANKSGIVING!!
And, hoping not to offend anyone (i.e., Lions fans), but "GO PACKERS"!!!!
Cindy
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The path a property takes when going thru the foreclosure will be, motivated sellers, short sale (if the owner is upside down), auction, Foreclosure (this will also be called REO or bank owned Property). In my opinion, your best price will be in the pre-foreclosure stage. If there is equity in the home, you can negotiate with the owner, if they are upside down, you can negotiate with the lender.(with the owners blessing). When the property is at auction, the lender will start the bidding at what is owned on the property. If not sold at auction, the lender will put the property on the market with a realtor. At this point, the lender will also have to pay commission to the agent.
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