Foreclosure in Minneapolis>Question Details

Nancy, Home Owner in Greenwood, IN

I hope to buy a home at a sheriffs sale. I know the mortgage on it is $475,000, and they owe 2 years of back property taxes.

Asked by Nancy, Greenwood, IN Wed May 8, 2013

When I go to the auction will the bidding price include the back taxes,or are there outstanding things I would also have to pay in addition to the auction price? Is it likely that the bank will let it sell for less than the outstanding mortgage amount? By how much?

Help the community by answering this question:


Yes. You will have to pay the taxes. Is it a 1st or 2nd mortgage?
0 votes Thank Flag Link Wed Nov 27, 2013
I say buy a home once its actually available on the MLS. Banks are typically the highest bidders on their own properties at SHERIFF SALES.

Contact a local agent who is experienced and that you CLICK with :)

Have a stellar day,

Cody Anderson, MN Licensed Broker

Metropolitan Home Team

Phone: 612-242-5752

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0 votes Thank Flag Link Thu May 9, 2013
Logically, a lender would bid as little as possible at a sherrifs sale, but if there is a second bidder, the lender's bid will likely include whatever they are owed which would include any taxes they've paid on the homeowner's behalf. Their goal would be to recover thier due without the hassle of carrying and later marketing the home to cover their investment.
0 votes Thank Flag Link Thu May 9, 2013
Nancy, I agree with Chris and Mike as they have valid points so I really can't add much more, but I would suggest (If you haven't done so already) to attend a sheriff sale so you can see how the process goes - it's usually happens pretty quick as the lender will have a representative there with a cashiers check in hand. Good luck to you - would love to know the outcome, keep us posted!
0 votes Thank Flag Link Thu May 9, 2013
No the bidding price won't include the back taxes, so you will have to take into account everything. There is a good chance they would bid for less than the mortgage amount, so I would certainly be optimistic there. Can't really say how much, but usually MV I think is best case scenario (otherwise you would not buy it right??). If it goes under that is for sure a steal.

Mike is right this is very rare in Minnesota. I don't know too many investors that want to pay cash for a property they have no control over for the next 6 month's. Just too many variables in play, and with that amount of money you have a lot more options I think would be optimal.

But hey if you have that type of buying power I am sure you got it down. I do work with investors, so if you ever want to chat real estate let me know!

0 votes Thank Flag Link Wed May 8, 2013
You could certainly bid on a home at a Sheriff's sale. You could also become the lucky high bidder. Most likely, the only bidders there will be you and the lender who will be bidding against you for the deed to the property. In most instances, only the lender shows up and nobody bids against them, so they become the lucky high bidder, because they are the sole bidder. Sometimes, the selling price at the Sheriff's sale is less than the outstanding mortgage, but it depends on the lender and situation.

The first question you need to ask yourself is.... are you willing to pay nearly half a million dollars for a property that you may or may not be able to see before you bid? The next questions is... Do you understand that if somebody lives there now, they could remain living in the home for a period of six months AFTER you acquire the property and they can do that rent free while causing damage to YOUR property?

There are many risks pertaining to buying a home at a sheriff's sale, which is why there aren't numerous investors at such sales.

My recommendation to you is to call me if you want to purchase this home. I know of a number of ways to minimize your risks. You'll have to act quickly, but there are better ways to acquire this property.

Call me.
Mike Kelcher
RES Realty
0 votes Thank Flag Link Wed May 8, 2013
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