Foreclosure in Willow Glen>Question Details

T Chambers, Home Buyer in San Jose, CA

I'm interested in a home that's being auctioned in two weeks. My home has not sold yet so I can not bid. Is?

Asked by T Chambers, San Jose, CA Fri Apr 10, 2009

the listing agent still connected to the property? If the property does not sell in the auction will the bank relist it at between the beginning bid amount and the amount it was listed on MLS? Thanks!

Help the community by answering this question:

Answers

6
Allyson Alessandrini’s answer
Hi T,
This is Allyson, you have gotten most of your answers already, but I would like to add the listing agent will most likely not be connnected to the property once it goes to Auction, the only way he would still be connected to it after the auction is if he is also an REO agent. If it does not sell at auction the bank will try and get as much as possible for the property by doing a BPO (like an appraisal) so what ever the comps. are for the property thats the price most likely you'll see it listed at or slighly lower.
If you have any questions feel free to contact me, I have had alot of experience in purchasing REO'S for my clients.

Regards,
Allyson
408-705-6578
allyson@homesbyallyson.com
0 votes Thank Flag Link Mon Apr 13, 2009
Hello T, and thanks for your question.

The other real estate professions on this site have provided you with extremely good information. So here's one question for you to ponder...

Can you afford to purchase a second home and pay for two mortgages?

If the answer to this question is "no," then you would be better off selling your current home first and then attending an auction to purchase the second home.

Although the private auction companies do have lenders on site who can assist you in the purchase of the home, these lenders (like all lenders) will require the purchaser to have adequate capital to complete the sale and enough income (and lower debt) to qualify and pay for the monthly mortgage payment. If you cannot pay for or qualify for the purchase of a second home now, it is unlikely that you will be able to complete a transaction at a private auction.

Trustee's Sales, which are held as the final step in a foreclosure, are a bit different from the private auction. In most cases, the "minimum bid" on a home is set by the outstanding loan and in today's market, often the cost of the loan exceeds the fair market value of the property. As a result, most of the homes sold at a Trustee's Sale reverts back to the lien holder--the mortgage company. There are no lenders at a Trustee's Sale and you will be required to present "cash" (or a cash equivalent, such as a certified check) to the County representative at the close of the auction. If you are truly interested in purchasing foreclosure property, there are several websites that you can subscribe to (all require a fee) that will keep you updated on foreclosures in your area.

Good luck and happy house hunting!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
0 votes Thank Flag Link Mon Apr 13, 2009
You didn't mention if the auction is the foreclosure 'auction' that takes place every day at 10am and 11am at 190 N Market SJ, or a private auction (such as REDC auction). REDC and similar firms auction off property similar to an estate auction. These have been taking place at the convention center downtown SJ. Besure to read the rules via the online site. Typically you will pay a 5% buyer fee, which includes a 1% fee that goes to a buyer's agent. You pay this whether you have an agent or not, so you might as well have an agent represent you.
Buying homes at an auction, either the courthouse or otherwise can be fun and exciting. Be sure you understand the rules for each.
Contact me if you need additional information about buying Bank Owned properties.
Joanna Bateman
0 votes Thank Flag Link Fri Apr 10, 2009
Once the property goes to foreclosure auction. Either a third party will purchase it or the bank. Assumming the bank gets the property back because of their lien, then the will have the asset management company or a broker they use to dispose of their REO complete a marketing plan to sell the property. The value will be determined by the market. It could be lower or it even could be a higher list price than it was with the mortgagor. Typically it will be a different real estate agent than it was listed with when the owner was trying to sell it.

Wish you luck.
0 votes Thank Flag Link Fri Apr 10, 2009
Is this currently listed as a short sale and goint to Trustee Sale (auction) in a couple weeks? Many times homes are not purchased at the Trustee Sale so the banks end up purchasing them back. Once the property becomes bank owned, the bank has a number of steps they must complete including obtaining Broker Price Opinions (similar to an appraisal but by licensed Realtors). The previous listing agent, most likely, will be excluded due to potential conflicts and the previous list price will have very little influence on the new list price. Depending on the bank, they will hire a 3rd party Asset Management company to take care of all the details including obtaining the BPOs, hiring the new Listing Agent, securing and cleaning the property, maintaining the property (including the gardening), etc. The banks do NOT was to own property, they want them sold quick and usually price them accordingly. Feel free to contact me with any additional questions and good luck!
Web Reference: http://www.jbellhomes.com
0 votes Thank Flag Link Fri Apr 10, 2009
Is this currently listed as a short sale and goint to Trustee Sale (auction) in a couple weeks? Many times homes are not purchased at the Trustee Sale so the banks end up purchasing them back. Once the property becomes bank owned, the bank has a number of steps they must complete including obtaining Broker Price Opinions (similar to an appraisal but by licensed Realtors). The previous listing agent, most likely, will be excluded due to potential conflicts and the previous list price will have very little influence on the new list price. Depending on the bank, they will hire a 3rd party Asset Management company to take care of all the details including obtaining the BPOs, hiring the new Listing Agent, securing and cleaning the property, maintaining the property (including the gardening), etc. The banks do NOT was to own property, they want them sold quick and usually price them accordingly. Feel free to contact me with any additional questions and good luck!
0 votes Thank Flag Link Fri Apr 10, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer