Dmontoya

Follow-up: I attended the auction yesterday and got a chance to speak with the bank attorney representing the property. In this particular auction, the bank had paid all liens to the property since they consisted of property taxes that take precedence over the 1st mortgage. After all bids were taken, the bank offered their final bid of $115,000. and will now look at selling it through a real estate agent, in as-is condition.
A question was asked of the bank attorney as to what would have happened if an offer was given closer to the $115k that he was asking for. He stated that, he, as the attorney representing that bank could not let it go for less than $115k.
An interesting piece of information he passed on: If he would have taken, let's say $70k for the property, since there is a redemption period of 1 month, the property owner could come back and pay the $70k or sell the contract to someone for $10k and the new owner could pick up the property for $70k. So, definitely, there's a risk during the redemption period.
Thanks to all for your comments. This was an interesting experience. If the bank finds the property to be substandard or not worth the effort to sell through a real estate agent, they may call on the bidders for an offer.

Have a great day! - Thu Mar 20 2008, 07:03

I spoke with the Special Master and could not get a clear answer. The Notice of Sale states: "The property will be sold subject to rights of redemption; easements, reservations and restrictions of record; taxes and governmental assessments; any liens or encumbrances not foreclosed in this proceeding; the valuation of the property by the County Assessor as real or personal property..."
"Transfer of title to the highest bidder shall be without warranty or representation of any kind."
This action is a suit to foreclose a mortgage secured by the real property described above. The total amount awarded by the Judgment to Los Alamos National Bank, with interest to the date of sale, is $144,896.35 plus its costs and attorney fees through the date of sale of the property and any amounts advanced by the LANB to protect its interest in the property before sale, including insurance, maintenance, taxes and assessments or other expenses relating to the property."
There were liens on the property; utilities and property taxes amounting to about $2500. Sounds like LANB has paid these liens and is looking to recover all its expenses. The property is vacant, and hasn't been lived in for about 10 years. The original loan was $45,000. The owner filed bankruptcy, but the judge determined NOT to include this property in the filings.
Any ideas?
Thanks! - Wed Mar 19 2008, 07:12

I may have a property for you. Are you looking to buy, rent or lease? - Tue Mar 18 2008, 12:10