Foreclosure in Grafton>Question Details

Ajsweet, Home Buyer in Grafton, WI

I am looking to buy a home at a sheriffs sale, however the mortgage company that currently holds the mortgage is Kondaur Capital.

Asked by Ajsweet, Grafton, WI Wed Mar 30, 2011

I have done some research on Kondaur Capital and they are in the business of making money on pools of loans that they receive from other banks. Does anyone know what there role is at a sheriffs sale? Im assuming that they hope there are no other bidders and they end up buying the property back so that they can place it on the open market for a huge profit. Or do they just end up letting the property go to the highest bidder and get these properties for so cheap they still make a profit. If anyone has any ideas or have worked with them before please let me know. thanks

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AJ-

The first thing that you have to understand about a sherrifs auction is that more than likely (probably a 99% chance) the very first bid will be from someone representing the bank or whatever asset firm may have the mortgage. This is occasionally also done by a lawyer that will have numerous parties that he is representing. Usually that first bid will be what the mortgager (bank) is owed. It could be a $20,000 pile of junk but if the mortgage that the bank was due is $50,000 that first bid is "usually" going to be $50,000. If you want to buy it at $50,001.00 they will be more than happy to let you "outbid" them. The crazy part about all of this is a year later or more, they might actually take the home that they bought for $50,000 that has sat empty the entire time and put it on the market for $20,000. This is the world of foreclosures, REO's and sheriffs sales. I can't give you any legal advice but buyer beware at a sheriffs auction. There may be more attached to that title than you know about or want. Occasionally you are also responsible for your own evictions.

Best of Luck!!
Duane
appletonrealestate@gmail.com
Web Reference: http://www.duanemurphy.com
0 votes Thank Flag Link Wed Mar 30, 2011
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