Property Q&A in Santa Rosa>Question Details

Van Moller, Real Estate Pro in Santa Rosa, CA

Why didn't this property go to auction? Doesn't lender have duty to owner to maximize selling price?

Asked by Van Moller, Santa Rosa, CA Mon Mar 30, 2009

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This question is about this property: http://www.trulia.com/homes/California/Santa_Rosa/sold/80524…

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Answers

2
Hello,

Properties only go to auction during the foreclosure process. In looking at the tax records, it shows that this property was taken back as "a deed in lieu of foreclosure."

Which by definition means: "deed in lieu of foreclosure," this conveys title to the lender when the borrower is in default and wants to avoid foreclosure. The lender may or may not cease foreclosure activities if a borrower asks to provide a deed-in-lieu. Regardless of whether the lender accepts the deed-in-lieu, the avoidance and non-repayment of debt will most likely show on a credit history. What a deed-in-lieu may prevent is having the documents preparatory to a foreclosure being recorded and become a matter of public record.

So that means that the owner surrendered the deed to try and avoid foreclosure. The small amount that this website shows it "selling" for is most likely the amount the property owner was delinquent. The bank will process this home, and then put it on the market to the general public for sale - at market value. Which will definitely be more then the price you are currently seeing.

Hope this info was helpful.

The Arend Group @ Rita Comstock & Associates
707-586-TEAM
RealEstateTime@aol.com
Web Reference: http://www.NorthBayTeam.com
0 votes Thank Flag Link Mon Mar 30, 2009
Check out the Realist info on Baries and I think you will get your questions answered.
0 votes Thank Flag Link Mon Mar 30, 2009
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