Foreclosure Sales

[TinyTGO]

Is there a way to determine what back dues are owed on a foreclosure contract before bidding? Or a way to protect yourself in any way before bidding?

 

[andycat]

It will be interesting to see if anyone can answer definitively, but I would think that if back taxes aren't disclosed that one could argue the property not being, "as advertised" - the seller can't provide clear title - and have grounds to ask the auction company to nullify the sale.

 

[kniquy]

This is only a guess because i was once interested in the foreclosure sales and was looking at them closely for awhile. On the OCC you can track when the contract went into foreclosure. There are ways to pull up the outstanding loan and fees for that contract, but I don't believe that you are responsible for all those fees and outstanding balances. It seems like a really slow process because a contract could have been put into foreclosure in 2016 and I'd see it go up for auction in 2018 - so with that i guess you could assume there might be 2 years worth of dues owed.

 

[TinyTGO]

This is only a guess because i was once interested in the foreclosure sales and was looking at them closely for awhile. On the OCC you can track when the contract went into foreclosure. There are ways to pull up the outstanding loan and fees for that contract, but I don't believe that you are responsible for all those fees and outstanding balances. It seems like a really slow process because a contract could have been put into foreclosure in 2016 and I'd see it go up for auction in 2018 - so with that i guess you could assume there might be 2 years worth of dues owed.

That would be assuming that the condo association filed after the first missed payment though, no?

 

[beercity]

I spent enough time looking at foreclosure sales last year to determine there was no possible way to get enough information to make an informed decision.
Also, DVC is able to bid on these auctions, and they have the unfair advantage that they know if the contracts are stripped and what is owed. DVC is bidding all the up to the going $/pt resale price on most contracts. If they avoid one, its probably because the contract is in such bad shape they do not want it. In that case, you probably will find that the contract is stripped and has a lot of past-due $ owed on it. Likely also DVC can "forgive" some fees on the contract if they buy it at auction. They would still need to pay dues in one way or another, but late fees, etc, would probably at their discretion.