What do you know about Sheriff Sales?

[Belle0101]

Here's the deal - my sister's boyfriend's house is, according to my sister, going up for acution via the local sheriff this coming Tuesday. She's not known for telling the truth so I wondered how things really work.

For instance, she claims that a bank has already contacted her BF and said that if the house doesn't go at the auction they will buy it. That bank will pay $40K less than the appraised value. I'm not understanding why a bank would buy a house and if they are interested why not just place a bid on the auction day?

She also said that you buy the house unseen. You don't go look at it first. I'm not much of a gambler so I don't think I'd like that idea.

As to the condition, she told me last night they are stripping it. They're taking all the light bulbs, all light fixtures (like ceiling fans and chandeliers).

I had mentioned that I should have inquired about the hot tub sooner (outloud wishful thinking on my part). The house has a for sale sign in the front yard. She said I could still buy it.

After talking about it, no thanks. Her BF wants $1K for it, 5 years old, needs $700 worth of known repairs. There may be more since it hasn't run since at least early Feb.

The listing doesn't exclude the hot tub so really, doesn't the hot tub stay with the house?

Anyhow, I just wondered how these sales really work. I'm nosey.

 

[MickeySP]

Most Sheriff's sales are as is.

Is it a foreclosure or a seizure of assets? Bit of a difference.

And I think if foreclosure he can strip it of all not lisyed, seizure he shouldn't be in it w/o an officer

 

[Belle0101]

My sister said it's a foreclosure. He's not able to pay his mortgage. He can't be in past Monday.

 

[Happy Mom2]

VENT: I don't understand why people strip a house and destroy it when they go through foreclosure. If you can't afford it, have the dignity to sign the house over and leave it in tack. Vent over.

That being said, if it's going through foreclosure, the sheriff usually starts the bidding at 35% of the appraised value. Anyone can bid on it. The mortgage company will usually give their representative a top amount they are willing to bid. If someone outbids the mortgage company, that person gets the hours and must pay within 48 or 72 house (may be different in other areas). If the mortgage company is the highest bidder, they don't actually "buy" the house. They just pay the sheriff sale fees. The sheriff's sale gives them the right to seize the house and re-sale it.

Homes sold at sheriff's sale are sold as is with no warranty.

Generally, mortgage companies take a 25% loss on a foreclosed home. There is no winner here.

The only way to stop a foreclosure is to pay up to date or file bankruptcy.

 

[aaarcher86]

So... in a foreclosure situation, after the auction if there is a loss, could the mortgage company then turn around and sue the owner for the difference of the sale/mortgage?

 

[Jestocost]

So... in a foreclosure situation, after the auction if there is a loss, could the mortgage company then turn around and sue the owner for the difference of the sale/mortgage?

Depends on the state. Some allow lien holders to pursue deficiency judgments others do not.

 

[Belle0101]

I totally agree about not trashing a foreclosed home. I told my sister I thought that was kind of petty to be taking the chandelier and the light bulbs.

As to the difference between what it sells for and the amount still owed, her BF already has a lawyer lined up and plans to file bankruptcy.

I understand these are hard times. But what gets me is hearing all the fun things they go and do - eat out at sit down restaurants weekly, weekend getaways, etc.

 

[Kathi OD]

Can't speak to your area, but around here you are allowed to inspect the property before bidding on it.