Home Buying in Tucson>Question Details

Mark, Home Buyer in Tucson, AZ

Can someone please explain to me what the following means :?

Asked by Mark, Tucson, AZ Thu Jun 19, 2008

Said sale will be made for cash (payable at time of
sale), but without covenant or warranty, express or implied, regarding
title, possession or encumbrances, to pay the remaining principal sum
of the note secured by said Deed of Trust, which includes interest
thereon as provided in said note, advances, if any under the terms of
said Deed of Trust, interest on advances, if any, fees, charges and
expenses of the Trustee and of the trust created by said Deed of
Trust. The original sum of the note is $640,000.00. Trustee will
accept only cash or cashier's check for reinstatement or price bid
payment. Reinstatement payment must be paid before five o'clock P.M on
the last day other than a Saturday or legal holiday before the date of
the sale.

Does this mean that the bidding will start at $640,000 ? Any help in this matter is greatly appreciated.

Help the community by answering this question:


It simply means that the balance of the note is $640k. The minimum bid will be announced by the trustee, usually 2-3 weeks prior to the actual sale occurs. Look on the NTR for the trustee handling the sale, then contact them to get the updated list of trustees sale. Some trustees have this information posted on their websites. Be very careful if you are planning on buying at a trustees sale, there are many pitfalls. I do not mean to be offensive, but if you do not know the answer to your own question above, you shoudl NOT think of buying at a trustees sale. Besides, these days, you are better off waiting for the property to come on the market as a bank owned home, than to buy it at the trustees sale.
2 votes Thank Flag Link Thu Jun 19, 2008
Call me. If you give me the address of the home, I can tell you what is owed to the bank by the county records. This will help tell you if you are in fact getting a "good deal". The seller may owe a lot less than they are telling you so that they can pocket some money. As I have said with some of your other questions, you really need to be talking to a real estate agent.

Heidi Guyton
Realty Executives
0 votes Thank Flag Link Sun Jun 22, 2008
I have never heard of any home owner and home buyer actually being able to have a meeting with the bank. Usually loans are serviced by an outside company and not hte actually bank that holds the mortgage. These servicing companies are often located in other states. So that seems a bit strange to me. You can definately buy the home prior to it going into foreclosure, but keep in mind there are many pitfalls when buying a home that is in default. Usually there are several liens on the property, and a home owner in default might not have the funds to pay these liens off. I would recommend getting with a licensed agent that can guide you thru this process as well as give you a comparative market analysis, so that you are sure that the price you are paying is what it is worth. Preferrably in this market you should purchase at a price lower than current market price, so make sure that you get a deal and not overpay for the property.
0 votes Thank Flag Link Sun Jun 22, 2008
Thank you all for your answers. I went ahead and called the current owner of the house. According to him, I'll be able to buy this house before it goes to auction, and he's setting up a meeting with the bank to get me the price that they will be asking for. Do you recommend this move ?
0 votes Thank Flag Link Sun Jun 22, 2008
I completely agree with Tonje Kearney . You may want to strongly consider all her advise very carefully. You will most likely get a much better deal on the house if you wait until it comes on the market. Using a realtor that is used to dealing with bank owned properties will also be very helpful to you in the negotiation process.
0 votes Thank Flag Link Fri Jun 20, 2008
Toinje has a very good point. Trustees sales are not what they were in the 80's. These days the banks will bid the full loan balance and take it back as a foreclosure, then market it substantially less. They do not care because they are collecting on the insurance that covers the difference in most cases, and if not they are writing it off as losses. I think if you want to bid on a house you should do a lot of research and maybe go to an auction on the courthouse steps before trying for one you want. It is not at all what you expect.

Good luck and let us know what happens. When we post to one of these questions it sends us email for follow-up answers.
0 votes Thank Flag Link Fri Jun 20, 2008
In a nutshell it says that mortgage companies love legaleeze..

There is nothing to indicate that $640,000 will be the bid amount. It does say that the Deed of Trust was originally for $640,000. and you may be able to buy said property for such. But I think it more directed at the person who is being foreclosed on. There has to be more to it also, due to the fact it really means nothing in and of itself.

What else can you tell us?
0 votes Thank Flag Link Thu Jun 19, 2008
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