Interested in a house and seen on the tax report it is going into auction 1/18/11, does this mean we can not put a bid?

Asked by Elena, 85032 Tue Jan 4, 2011

My Husband and I have been looking for houses for a few months, we have an agent but he has been out of town for the last week, and i Just seen the tax report on the top choice of the houses we wanted.. But this is what it says:
FORECLOSURE DETAILS
Recording Date: 08/18/2010 File Number: Deed Type: NT
Orig Name: CLIFFORD & BOBBI K TEALL Orig Date: 04/20/2009 Orig Doc # 090347301
Company: SUNTRUST MORTGAGE INC Orig Mtg Bal: $231,287
Auction Place: Trustees Office Auction Date: 01/18/2011 Auction Time: 11:00:00
Trustee: PERRY & SHAPIRO LLP Phone # (602) 222-5711 Sale ID:

We are looking at the MLS, it has a price..
Does this mean we can't put a bid in? or we can't buy it before the auction date? We don't have cash to go to the auction we only have pre-approval for a mortgage! Help! :)

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14
Matt Puzz, , Phoenix, AZ
Tue Jan 4, 2011
Make an offer on the house, some homes may be listed for auction but the sale is vacated or there may be an attorney that gets a temporary restraining order against the sale or maybe even a bankruptcy that effects the sale of the home at auction. Bottom line is if you like the house put an offer in for the home, if you do not have a Realtor there are plenty of good ones on this site, I work with many buy Doug McVinua has added to this thread and I know his work. Good Luck and if you need financing I will gladly assist you. Good Luck!!

Matt Puzz
Licensed Loan Originator
Amerifirst Financial, Inc.
1910 S. Stapley Drive #209
Mesa, AZ 85204
Direct: 602-410-9333
Office: 480-682-6617
Fax: 480-344-3687
NMLS# 213777 AZ LO-0915068
Apply Online: http://www.mattpuzz.com
Web Reference:  http://www.mattpuzz.com
1 vote
James Wehner, Agent, Scottsdale, AZ
Thu Jan 6, 2011
The group here is correct in their advice and options. Although I'd like to add a little more.

Just because your agent is out of town, does that mean he is unavailable to conduct any business? Call you agent and discuss your situation, maybe they can line up a colleague to assist you while they are out of town with viewing the home and anything your agent can't handle remotely.

I've sold dozens of homes while I was out of town and with today's technology, there's no reason any agent can't make it happen for you.

One step at a time, call your agent, have them talk with the listing agent to see what's going on, if there are no offers already submitted to the lender arrange to view the home(sometimes agents leave the listing active while they have already submitted an offer). If you like the home after viewing it, submit an offer and see what happens.

Other than that, you may just be worrying about something you have no control over.

Best of luck!
Web Reference:  http://www.jameswehner.com
0 votes
Stephanie We…, Agent, Gilbert, AZ
Thu Jan 6, 2011
Hi Elena, ask your agent to get your offer in asap since it's "scheduled" to go to auction on Jan 18th. In many instances, they can postpone the trustee sale. Make a realistic offer within reason that the bank may be willing to accept. You will also need to put a 1% earnest money deposit down that is "NON REFUNDABLE" for the 1st 90 days on this property. If you walk within that 90 day period, then you will lose your EM. It's refundable after the 90 day period if no bank approval is obtained. Good luck!!
0 votes
Jason Whaley, Agent, Mesa, AZ
Tue Jan 4, 2011
It is highly unlikely that the lender would stop the auction with less than 2 weeks to get everything signed and submitted, at least that has been my experience doing short sales for the past 7 years. We have buyers that go to the auctions and I have private investors that could buy the property at auction and resell it to you. Obviously they would want a fee for that service as they would be tying up over 200K for at least a month while you get your financing lined up. I can email you the night before the auction when I know what the opening bid will be and you can decide if you want to go ahead with the process. We can also get you into the home prior to that if needed. We have done this with other buyers in the past that have waited months during the short sale process and then they lose out when the property forecloses. You financing type will also depend on how quick we can turn this around. Feel free to call text or email me with any questions.

Jason E Whaley,GRI,SFR,CDRS
Real Estate Broker
RE/MAX Homes & Investments
480-254-6464-Cell/Text
jw@rexmn.com
Web Reference:  http://www.SearchAZmls.com
0 votes
Dagmar Mouri…, , Chandler, AZ
Tue Jan 4, 2011
From the circumstances you describe I'm pretty sure the property is currently listed as a Short Sale. The owner is looking for someone to make an offer, and the hope is, that the lender accepts it and the owner can avoid foreclosure. Often the lender will postpone an auction when an offer comes in. If the current owner is not successful with a Short Sale the property will go to auction. If nobody makes an offer then the property is given back to the lender and you can find it on the mls as a "Lender Owned" property.
Web Reference:  http://www.azbestrealty.com
0 votes
Temporarily…, , Tempe, AZ
Tue Jan 4, 2011
It's best to handle this through your agent if at all possible. Did your agent leave you another contact during his absence? You can also talk to his broker for assistance.
0 votes
Brenda & Ron…, Agent, Mesa, AZ
Tue Jan 4, 2011
Elena,

You can put in an offer on the home as normal and the bank may postpone the auction date. Sometimes the auction date gets postponed without an offer anyway, but I would not count on that.

Even if you get an offer accepted the bank could still foreclose, this happens periodically. Now, at the auction, an investor could pick it up. He could keep it as a rental, or some investors and flipping the homes. Meaning that it would come back on MLS and you could try to buy it then. Or, the bank may get the property and it would come on the market as a REO (bank repo). In any case, your Realtor should be able to help you with any of these situations. Unfortunately, it could happen that someone that wants the property goes to auction and purchases it outright for themselves and you will have to move on to another home to purchase. This is less likely but does happen. Most of the time the bank has the price high enough at auction that no one wants it and it then becomes an REO listing on MLS.

Best of luck to you!

Brenda
0 votes
Sean Heideman, Agent, Phoenix, AZ
Tue Jan 4, 2011
As you might know, the house is currently in foreclosure where the bank has given the own 90 days to pay the delinquent payments or the balance in full before the trustee sale set for 1/18/2010. Often times you can submit an offer on the house before the auction date and the lender will postpone the auction for another 30 +/- days; therefore, giving the person submitting the offer the chance to purchase the home before it goes to auction.

My wife and I submitted an offer a few weeks ago on a home that was set to go to auction and the bank did not postpone the auction date for one reason or another. My wife really wanted the house and since we are cash buyers we just went to the auction yesterday, bid on the house and purchased it for $1 dollar more than the opening bid. We still got a good deal on the house. Basically, if a house goes to auction you can still purchase the house if you are comfortable with the condition of the house, you research the public records for any liens that would not be wiped out after the auction and you can pay cash within 24 hours after the auction.

If you don't have cash one hand, then you can still purchase a property at the auction with a "hard money" loan where you simply refinance the loan directly after purchase to avoid having to pay a high interest rate. If you decide to go this route, then you want to make sure you are 100% sure you can get a conventional loan to refinance the hard money loan. This is very risky and you should allow a real estate professional to assist you with this technique.

I offer an auction service where I can go down to the trustee sales (auction) and bid on properties on the behalf of my clients. If you are interested in hearing more about what I can offer, then please feel free to contact me.

Sincerely,


Sean Heideman
480-213-5251
0 votes
Jeffrey Masi…, Agent, Scottsdale, AZ
Tue Jan 4, 2011
Dear Elena:

Yes, you can put an offer in now and beat the auction bidding. The bank may take the home back at auction to relist it as a bank owned property. Or, they may extend the auction date fort the short sale process to continue. One never knows. Talk to your Reatlor about the best option for you.

You have more protection when using an Arizona Purchase Contract with the home inspection process. At auction there is more risk. If you do decide to go with an auction bid, feel comfortable with the home and it's condition before bidding.

Jeff Masich
Arizona Homes and Land
HomeSmart
Web Reference:  http://ArizonaHomesLand.com
0 votes
Doug McVinua, Agent, Gilbert, AZ
Tue Jan 4, 2011
Elena

I agree with the mass on this one, the best option would be to put an offer in right away. No guarantee the bank will stop the foreclosure but if you don't try the outcome is guaranteed.

Sometimes the Short Sales go faster when the Trustee sale date is so close.

The other option if it goes to Trustee sale is to wait for it to come back on the market as an REO.

Doug
HomeSmart

Arizona Homes for Sale by a Guy from Iowa
Web Reference:  http://www.McVinua.com
0 votes
, ,
Tue Jan 4, 2011
I think your best bet right now is to put your highest and best offer in this morning if at all possible. The sooner the better so the bank will have time to delay the foreclosure. Also have your agent follow up with the sellers agent to make sure the offer has been submitted to the negotiator. Squeaky wheel gets the house!


William May
Platinum First Realty
480.236.2796 Direct
480.288.0283 Fax
WilliamDMay@msn.com
http://www.AzHomeAndLandSearch.com
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Tue Jan 4, 2011
Edson is correct, you can put a bid in on it but it is so close to the courthouse auction that you may be too late. Even if the owner accepts the offer the bank has to also agree and getting them to even reply to your offer can take weeks to months.

You can go to the auction and bid there but your agent probably will not be able to help you since they house will not be paying a commission at that time so the agent would not make anything. Once the bank owns it they can list it for sale on the MLS for market price which is likely less than what it will sell for at the auction assuming the bank buys it back.
0 votes
Edson Salas, Agent, Phoenix, AZ
Tue Jan 4, 2011
HI Elena,

AbdulHadi is right. The house shows active on MLS which means you can still put a bid on it. Though it is not guaranteed that the foreclosure will be postponed if your offer gets accepted there is a good chance it will. Short sales are really on a case by case basis there are many variables which can determine if the bank will postpone the foreclosure or not. Either way, if you really like the house you need to put in the offer ASAP and allow enough time for the bank to do what is necessary to postpone the sale. You also need to make sure to present your offer right.

Thanks,

Edson Salas
Designated Broker
Equity Executives Real Estate Group
edson@equityexecs.com
623-478-0427
0 votes
AbdulHadi Al…, Agent, Phoenix, AZ
Tue Jan 4, 2011
Hi Elena,

The house you interested in is a short sale and it is active in the MLS, which means you can make an offer. The foreclosure will be put on hold if the seller (home owner) accepted your offer, and it shows that a professional negotiator is assigned for the listing which is a plus.

Sincerely yours,

AbdulHadi Al-Sayyed
sayyed@westusa.com
480-893-0600
Web Reference:  http://www.homesbyaz.com
0 votes
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