What happens after auction home sale?

Asked by Lagonzalez78, Fort Lauderdale, FL Sun Sep 22, 2013

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Jim Simms’ answer
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Mon Sep 23, 2013

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
Web Reference:  http://jamessimms.com/
0 votes
Lila Lopez, Agent, South Miami, FL
Mon Sep 23, 2013
Good Morning,

The day of auction there are a couple of things that can happen. If there is no winning bid from a viable buyer that pays the minimum about the bank is looking to yield then the bank basically takes possession of the property and it added to their Bank Owned portfolio. A Certificate of Title is issued to either the buyer or the bank, depending on who gets the property. The issuance of the Certificate of Title can take a few weeks as the current home owner is allow a timeframe in which to reinstate the defaulted mortgage. Should the home owner fail to reinstate the loan, the holder of the Certificate of Title is the new property owner.

Since your question does not indicate if you are a buyer looking to purchase a property at auction or a home owner that is in default, the answer needs to be kept rather general in nature. Should you have any additional questions please feel free to contact me.

Lila Lopez, CRS, CDPE, e-Pro
RE/MAX Advance Realty
1 vote
Yanoska Diaz, Agent, Miami, FL
Sun Sep 22, 2013
Are you referring to your home being sold at foreclosure auction? or Buying a property that was up for auction?

If your home was sold at auction, meaning it was foreclosed, it very much depends on what happened at the foreclosure sale, was the home purchased by an individual/entity other than the Bank? or Did the Plaintiff/Bank was the winning bidder?

Please feel free to contact me via my profile and I will be able to give you more details.
0 votes
Alma Kee, Agent, Tampa, FL
Sun Sep 22, 2013
Where do you see it listed for auction? http://www.Auction.com http://www.Hubzu.com or is it an onsight auction?

give us more info and we'll try to help.

I've had very good experiences with http://www.Hubzu.com

All the best,
0 votes
Ann Ryan, Agent, Doral, FL
Sun Sep 22, 2013
It really depends on the terms of the auction. Most of the time, you really need to consider this a "Caveat Emptor" (Let the buyer beware) type of situation. Important questions to ask:

1) Will you get clear title?
2) Will the house pass inspection? If not, how much will it cost to bring it to code?
3) Will the property be vacant? If not, what are your risks, and how much will it cost to evict/move the residents?
4) Probably the most important, HOW MUCH WOULD A SIMILAR PROPERTY WITHOUT THE RISKS cost? Because you want to make certain that you're getting a bargain in exchange for higher risks.

Ann Ryan
Keyes Real Estate
0 votes
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