I highly recomend having an agent help in any purchase, especially with distressed properties.
The reps that are handling the foreclosures normally have in excess of 500 files on their desk at any given time.
They are trying to minimize their losses and we will all pay for these losses in the end.
The trustee sale is simple but normally for the big boys. It takes a $10,000 cerified check to register for the sale and the balance is due in cash within twenty four hour. There are "wholesalers" that buy as many as 20 homes a month each. The sales I have attended they tend to shy away from homes over the $300,000 mark.
If you have a confirmed deal with the bank, arranged to pay for it ,that they approve, checked the title for any other liens, like taxes, then I would do the deal.
Remeber normally the second can also bid on the home but that doesn't happen often and in this case probably not at all. If they win the bid they would have to pay off the first to control the property.
The last purchase I watched was a first of $317,000 and the buyer got the home for $225,000. Great condition, beautful home, golf course lot with a pool. There was six bidders.
If you play the trustee sale game you have to be able to lose the home and buy a different one. You will never know if you are going to be out bid, the bank pulls the home at the last minute or postpones the sale to another date.
Good luck, hope you get your house.
You might very well be right. But there are several consideration you need to take into account. Depending on the value of the property and the bidders who show up it may or may not go for under $350k. On a short-sale you can inspect the property and cancel if you find something unexpected. On a trustee's sale you do not have a right to cancel due to inspection. If you have already inspected the property or if they give you the chance to inpect prior to bidding on the trustee's sale you might be covered. Anothe factor to consider is that most trustees sale will require a cash purchase, you will have a maximum of 48 hrs to come up with the cash. If you do not have the cash in hand you will loose the down payment.
There are many factors you need to consider on a trustee's sale. Rather than asking the lawyers who represent the bank (seller) find an experienced Realtor who will be looking for your best interest and not those of the seller.
Thanks for such quick responses!! There is more information I could not include in the original question because of space. First, I know the owners of the house who moved out of state at which point i moved in and started renting (after selling my house). So, i feel comfortable on the value of the house. Second, I am represented by an Agent who did provide a FMV based on comps. Yes, i did make an official offer (the original $320k), but the rest of the negotiations were verbal. To Carlos's point, i have contacted my lender to ask about the cash within 48 because that concerns me.
I believe the reason the bank didn't jump at my original offer is that there is a 2nd on the house in the amt of $80k and they were trying to recover their loss as well. My offer completely covers the first. I do think they (Wells Fargo) have been extremely negligent on this offer and my realty company has actually said they won't enter into a short sell with them again. Meanwhile, I'm trying to figure out if i just go ahead and pay $350k so i don't have to move (though i never unpacked) or if i go for it (the auction).
Oh, and i've asked my agent if she feels comfortable representing me through this sale; i want to make sure i've got someone with the expertise to advise me so i hope she'll offer someone else if she can't offer that.