Home Buying in 07403>Question Details

INTERESTED B…, Home Buyer in Trenton, MI

there a house being listed with a realtor, we put a bid in and they told us that the bank is not accepting any offers that it is going to auction.

Asked by INTERESTED BUYER, Trenton, MI Fri Jul 23, 2010

Can they still have a house listed with a MSL # as if it's still avilable, when actually it is going to auctioned? Thank you

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So sorry, I answered this before and didn't realize you were back East in the Judicial states for foreclosure. In California there are auctions that are done at convention centers and other places. I want to retract my comment. I didn't know which state you were asking about and the term "auction", I presume is being referred to in the judicial foreclosure court proceeding.
0 votes Thank Flag Link Fri Jul 23, 2010
As the others have said the bank has made the decision to proceed with the foreclosure. In this case application would have be made to the court and the court has ordered that the property be sold at auction.
You can certainly bid on a property ahead of the auction but you should be aware of the fact that once it is in "auction status" you , the buyer, are liable for the auctioneers commission which is normally 6% of the purchase price.
Furthermore if you go to the auction you will have to pay cash
So in a word - forget about it.
0 votes Thank Flag Link Fri Jul 23, 2010
The other issue is there maybe to many liens on the property for the bank to clear the title so the only way they can clear is to proceed with foreclosure. This happens a lot so the bank decides not to do any short sale. The auction is by the sheriff so all liens are released and then the bank will decide what they are going todo with it.
0 votes Thank Flag Link Fri Jul 23, 2010
Yes, they can. Especially because agents are still able to show it and even earn a commission through representing a buyer at the auction. Think of the auction being like a seller asking for highest and best on a specific date. The home is still available, and you should take advantage of seeing it and making sure you know what you are getting(both good and bad). Being that you appear to be looking in Bloomingdale you also want to consider septic issues if there the home does not have public sewer. Often time these homes can have septic issues and that can be a costly repair to inherit(Often 20,000k or more to replace). If you need more help or guidance, I have experience with auctions and would be happy to offer you any additional guidance. Hope that helps.
0 votes Thank Flag Link Fri Jul 23, 2010
Many times banks will list a property with a Realtor, while it is processing the foreclosure paperwork thorugh the courts. If the property sells, the bank does not have to proceed, but if does not sell and the bank gets notiified that the sheriffs sale is scheduled, they will stop accepting any offers and wait for the auction.
It appears this is the case with the property you want to purchase.
You can find out from your county when the property is scheduled to be auctioned, and actually go to the auction and bid on the property yourself! You can also ask your Realtor if he/she can find out the information for you, so you can get all the details of how an auction works, what is expected of you on the dalte of auction, etc.
I hope this helps!
0 votes Thank Flag Link Fri Jul 23, 2010
The real answer is that the MLS listing continues. The offer should be submitted. The listing is probably still valid. The only thing an auction is, is this....."it is an organized gathering of different listings by a company, with the hopes of getting a high enough offer that the seller (bank) will accept the offer.
Just because a property is going to auction, doesn't mean it isn't available. I've had an accepted offer from the bank and we were ready to go to escrow. Even though our offer was accepted and higher than the sales price, the bank decided to let it be sold at auction. The higher sales price never happened and then ended up calling us back to see if we wanted to go to escrow. They buyer was reluctant and I lost that deal. AN AUCTION IS AN ORGANIZED GATHERING OF LISTINGS AND PEOPLE FOR A SALE..........that's all it is, but in your case, the bank just isn't looking at offers right now. I would put in the offer. if the auction does not go well, they will be calling you.
Web Reference: http://www.sopactitle.com
0 votes Thank Flag Link Fri Jul 23, 2010
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