on foreclosers, does the bank who holds the mortgage, expect to receive all of the loan amount when the house goes the court house steps?

Asked by Julie, 30606 Thu Dec 30, 2010

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Bob Movin-On, , Hartford, CT
Fri Dec 31, 2010
The bank has the last say they can retain the home if the bids do not exceed what they are owed plus costs.
My experience is attempting to pick up properties at foreclosure auction is a waste of time.
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Joanna Morris, Agent, Inverness, FL
Fri Dec 31, 2010
You could also inherit a big mess from outstanding liens by purchasing this way.
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Brittany Pur…, Agent, Braselton, GA
Fri Dec 31, 2010
Julie - If you have any questions about foreclosures, feel free to call me 770-713-4278. I live in Athens and I specialize in foreclosures in short sales. The answers you see below are accurate. The bank starts bidding at the loan payoff. You also must bring cash equivalent to the courthouse steps to purchase a home and there are many reasons it's not a good idea to start at the courthouse steps. I would be happy to elaborate for you.

Happy buying!
Brittany Purcell
Keller Williams Realty Greater Athens
Web Reference:  http://www.brittanysells.com
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Hank Miller, Agent, Alpharetta, GA
Fri Dec 31, 2010
The objective is to cover the outstanding balance, opening bids are usually that figure. If a buyer jumps, they will usually take the deal - best case is a bidding war on the steps that drives the price up. Reality is that most homes are over mortgaged so the lender ends up taking it back, cleans it up and lists it for sale with an agent. Part of the prep is routine maintenance and an appraisal so the lender has an idea of current market value.

I'm a broker and a FNMA appraiser - my role is to eyeball and provide an opinion of market value for lenders when they get ready to list these homes.

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William M "M…, Agent, Suwanee, GA
Fri Dec 31, 2010
Hi Julie~ The opening bid for the property on the courthouse steps is for the current payoff of the mortgage (plus attorney fees) and it is made by the attorney representing the bank. If no one makes a higher bid then the property goes back to the bank.
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Darren Ahearn, Agent, Frederick, MD
Thu Dec 30, 2010
Sure- banks are very greedy- they want all they can get- but in some cases they will take a little less- they all have a threshold where they will not go below- that falls between a short sale price and foreclsoure- if the market is still in decline as a trend then they will take more- but if its in good condition and does not require much work they will hold it-
Web Reference:  http://www.DarrenAhearn.com
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Tracey Martin, , Salinas, CA
Thu Dec 30, 2010
I believe that to be the case. The court house steps is where the trustee for the bank, makes a "last ditch effort" to get the Investor, for the loan, what is owed on the loan. That is why, more times than not, the home goes back to the bank. After the trustee sale, when the bank list the home for sale, the asking price will be somewhere around fair market value.
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Lee Taylor, Agent, Decatur, GA
Thu Dec 30, 2010
If the bank is not well represented locally, if the bank is not staffed by talented people, and if the bank is careless, then they can be misled.

The bank has completed some level of timely collateral evaluation before foreclosure. Just know that.

Are you preparing for a 30306 buy next week?
Web Reference:  http://intowninsider.com
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