     steph | Saturday, January 15, 2000 - 04:52 pm 
I want to buy a home that is in defult but has not been forclosed on yet.
it belonged to a couple who divorced one filed bankruptcy while the other
did not.
the party who did not file was going to let the bank forclose on the house.
A year later the bank calls and says are you sure you want us to forclose or
do you want to keep it. (he never persued it cause he thought the house had
already been taken by the bank)
Ok this is where my question comes in:
The principle was paid down to 109,800 and after a year of intrest the bank
says if you still want it you have to pay 127,000.
the property is apprised at about132,000.
A rep at the bank said that the trustee handling the bankrupcy of the other
individual had to be given to them relesing the house from the bankruptcy
and the trustee will also require that no mater what the sale of the house
any outstanding debts will not come back on this person.
so the letter is submited with my bid of 110,000
I want to know what kind of a loss is the bank willing to take this case
would be about 17,000. But they will get their principle and they would be
rid of the house.
What kind of money would it take for them to turn me down and then procede
with auction or trying to sell through a realter.
When a house is auctioned typically how much under market value is it sold
for?
I'd appreciate any heads up i can get right now
even odds
I feel like i'm at the mercy of the bank |
| Christine Baker | Sunday, January 16, 2000 - 11:23 am
You ARE at the mercy of the bank.
There are absolutely no guidelines as to what type of loss (if any) the bank will take prior to foreclosure.
I've had banks refuse offers to buy prior to foreclosure with a $10K loss, only to watch them foreclose and 4 to 6 months later sell the property with a $50K+ loss.
It doesn't look like there will be much of an auction, the bank will get to own it if your figures are correct.
Often the "short sales" are handled in a different city or even out of State. It all depends on the banks current management. Track them down and find out.
Good luck! |
| Stephane | Thursday, January 20, 2000 - 03:55 pm
I know the bank is northwest or norwest something like that. It's big. The woman at the company i'm working with for financing said. Because it is such a large bank they could have people within the company who specialize in taking care of this sort of thing and it would be "a drop in the bucket" refusing my bid. On the other hand i'd lije to think it goes both ways after all they would get the principle back on their loan. |
