My husband and I are planning on attending a SHERIFF SALE next week and were curious as to what role that bank plays in the sale.

Asked by nml83573, Greenwood, IN Wed Jun 12, 2013

The home is being sold at the sheriff office as a sheriff sale. Wells Fargo is the bank at hand. Will the bank definitely be there? Do they always make the bid high so no one else gets it for a reasonable price? We are willing to pay a good amount, but not what it is most likely worth due to not being able to see the lower level or bedrooms. I live in central PA.

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Ryan Garrity, Agent, Philadelphia, PA
Wed Jun 12, 2013
Wells Fargo will have local representation present at the sale in the form of the attorney's office who is handling the foreclosure process. The attorney will bid on behalf of the bank up to the payoff amount, which includes the loan balance, any outstanding interest, property inspections/preservations, escrow deficits, etc. In most cases that payoff amount is greater than the market value of the home. If it wasn't, then it probably wouldn't be in foreclosure. If there was equity in the property, then the previous owner would probably have sold the property and pocketed the equity, rather than stop paying their mortgage and damage their credit (however, there is always the rare occurrence and some properties do get sold to third party investors at sheriff sale).

If you don't get the property at sheriff sale, and the property is not purchased by a third party investor, then the property will go back to the bank. Once the sheriff's deed is recorded and the bank takes possession, they will most likely list it for sale with a real estate agent. So, even if you don't get it at sheriff sale, it may be worthwhile to keep your eye on it as it may be listed for sale not too long after. Hope this helps. Feel free to reach out with any additional questions.


Ryan C. Garrity
U S Spaces, Inc.
2206 Walnut St.
Philadelphia, PA 19103
215-829-8850 x208
215-514-9424 (cell)
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nml83573, Home Buyer, Greenwood, IN
Wed Jun 12, 2013
What does the bank typically do then once they buy it?

The reason we are Very interested is because the property adjoins the 1.5 acres we already own and were intending to build a home on shortly. This would be a great opportunity if we could get it for a good price. The nice thing is we were able to look around and we know that the house is in decent shape and is only 10 years old, it's just the not fully knowing the rooms we can not see that makes us nervous to bid too high. Thanks for everyone's help!
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Sheri Curci, Agent, Newtown, PA
Wed Jun 12, 2013
I totally agree with Jim and find his answer to be right on the money. Buyers today think bankers just want to unload their properties. This is absolutely not true. They want the highest amount that the area commands in comparable sales.

Good Lucks at the Sheriff sale

Sheri Curci
Remax Properties
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Wed Jun 12, 2013
Wells should have representation there, you may not know who it is, they usually have a local attorney represent them in such matters. They might bid against you, they should bid to a point that recovers as much as possible towards the outstanding mortgage and yet not worsen their position. I know that sounds like Greek, but that is what they SHOULD do. It doesn’t mean they will do it. If they found out the house was built on a former toxic waste dump they should only bid in an attempt to boost the price, not to buy it back. Doesn’t that sound nasty?

If everything is hunky dorie they could bid up to their outstanding balance, using a formula to determine how far they are willing to go. There is nothing preventing them from making a profit if the house is worth more than the balance. So, think of them as an investor that has already written one check, they have no reason to not bid if there is profit potential. Do they want the house? Absolutely not.

People that think bankers give away real estate are just naïve, they didn’t build those sky scrapers being a non-profit organization.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
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Ron Thomas, Agent, Fresno, CA
Wed Jun 12, 2013
Good guess:
The Bank will probably offer the amount owed by the Homeowner.
You know, that will be more than the Market Value of the house, or else it wouldn't be in Foreclosure.
There are exceptions.
Add to that the fact that they will want CASH:
And you will not be allowed to make any Inspections.
And you will not be allowed to make any Contingencies.
You might check with them first, before you waste a trip.
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Scott Godzyk, Agent, Manchester, NH
Wed Jun 12, 2013
The bank is the one holding the sale and will usually have a minimum unless it is advertised as absolute. Any back taxes, liens and HOA fees could be the responsibility of the buyer so check the auction terms. The bank is usually not there itself, it could be an attorney or the auctioneer that has instructions from the bank.
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