What happens to a house that does not sell at foreclosure auction?

Asked by Shortbuyer, Maryland Thu Jun 25, 2009

I am interested in buying a house that I have found out did not sell at foreclosure auction. What happens when a house doesn't sell at auction? It's been over a month now, but I haven't been able to find it for sale. Would a Realtor be able to find information and help me buy it?

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3
Ania Miller, Agent, Millersville, MD
Thu Jun 25, 2009
BEST ANSWER
Let me know some more information about the property so that I can investigate this for you. Tipically what happens is that if there was no success at an auction,the foreclosed property is then owned by the bank and if the bank did sell it there is a period of time which they have to wait just in case the owner is able to come up with the the funds needed.
This can be a long process from beginning to the end.
Again, let me know if I can help.
Ania

AniaMiller@kw.com
Web Reference:  http://www.aniamiller.com
1 vote
Larry Hermann, , Troy, MI
Tue Jul 7, 2009
Unless it was withdrawn from the auction date (and I can't tell by your question) it was purchased by the original mortgage company for the amount of the stated forclosure amount.

If that hapened then the buyer has a redemption period to reclaim the house. However it must be a cash payment at this time. In Michigan it is 6 months unless the house has been abandoned. Check with the mortgage co. or its attorney. It can be purchased directly from them after the redemption time has expired.

If you do this be careful that you don't bid too high. Check out what similar homes are selling for not listed for, but a final sale price. Deduct the selling commission and bank holding costs from that, and then some more. Good Luck !!

L.H.
Michigan
0 votes
Keith Manson-…, , Milwaukee, WI
Thu Jun 25, 2009
There a couple reasons why a property may not go to foreclosure sale. The mortgagor was either able to payoff loan, reinstate the outstanding debt or able to workout a modification with the bank. The other reason why there would not be a foreclosure would be that the mortgagor filed bankruptcy. The fastest why to find out is contact the foreclosure attorney handling the foreclosure for the bank. A realtor knowledgeable about the foreclosure process might be able to assist in identifying the attorney if you can not.



Keith Manson
First Weber Group
Certified Distressed Property Expert
Greenfield,Wisconsin
0 votes
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