Sheriff Sale Property Auctions

ronbre · #21 02/12/12, 11:13 AM

i would have a couple concerns, ..1 ..is the person getting out of jail in the future going to come and terrorize the person that buys that home?? yikes..maybe I watch too many movies...and 2..what kind of crimes were done there and is it a good neighborhood.

My sisters' daughter got a lovely home from a forclosure situation for $32,000 ..much less than the $50,000 above and it was in perfect condition and no criminals coming to check on it in the future

farmerj · #22 02/12/12, 11:19 AM

Here's one example of the legal notices that are published in an "official newspaper". January, our county commissioners voted on that topic again for the year.

http://www.independentreview.net/new...egal%20Notices

pistolsmom · #23 02/12/12, 05:06 PM

The rules etc. are different from state to state.....the number one thing to check is if you buy the property are you responsible for any liens against it.

BarbadosSheep · #24 02/12/12, 05:31 PM

Quote:

Originally Posted by farmerj

I went to the sheriff's office once and walked in on one that was about to start.

There was one guy there from the bank holding the mortgage itself.

Sheriff asked if I was there for the sale. Told him no.

He said the bid was like $50K, the man agreed....

Going once, going twice. Last call...

sold, $50K.

The bank just bought a $400,000 farm.

.

Thats how it's done here too. The bank forecloses, and then buys the house back at auction for pennies on the dollar. No one else is given the chance to bid, other than the banks attorney. Last sale I attended a $250,000 house on 3 acres of land sold back to the bank for $500. It's all on the tax records for that house. I know this to be a fact....it was my house that was sold. There is so much corruption it's just sickening.

big rockpile · #25 02/12/12, 06:36 PM

Quote:

Originally Posted by am1too

If that is the case there is prolly some provision if the tax sale purchaser add valut to the property such as a fence or building. I'm sure that is the law here in Oklahoma. It used to be anyway.

Nope all they have to pay is Back Taxes + 10% whatever improvements that are made are theirs.

I thought BS but that's what the Lawyer said.

big rockpile

equinecpa · #26 02/13/12, 11:11 AM

We were looking to buy land in CO for several years, and of course during that time had the opportunity to see many properties come up for sale in foreclosure. None of the ones we looked out sold to a third party -they all went to the bank.

I also reviewed foreclosure sales in the Denver area for a period of about a year -the only properties that were actually selling at foreclosure sales were properties less than $75,000 and more often less than $45,000. I would assume the reason for this is twofold:

a) How many people have the cash to drop on a property without financing it;

b) And how many people are willing to purchase a property without seeing it first, having it inspected etc.

Nevada · #27 02/13/12, 11:24 AM

Quote:

Originally Posted by equinecpa

We were looking to buy land in CO for several years, and of course during that time had the opportunity to see many properties come up for sale in foreclosure. None of the ones we looked out sold to a third party -they all went to the bank.

I also reviewed foreclosure sales in the Denver area for a period of about a year -the only properties that were actually selling at foreclosure sales were properties less than $75,000 and more often less than $45,000. I would assume the reason for this is twofold:

The dynamics of a bank setting the opening bid above what an investor would be willing to pay can be complicated, but the largest factor is that many banks can't afford to reconcile a big loss against their books. The thing is that if banks hold the properties for sale at a later date then they can say the properties are worth anything they want to say their worth. But if a property is sold any loss has to be reported on the bank's balance sheet immediately.

Quote:

Originally Posted by equinecpa

And how many people are willing to purchase a property without seeing it first, having it inspected etc.

There are plenty of investors who are willing to trade risk for low purchase price, but it's got to be a really great deal. Those investors aren't just looking to make a fair profit; they are looking to make a killing. If an investor doesn't realistically believe that he's going to double his money on the deal then he isn't going to bid.

texican · #28 02/14/12, 10:26 PM

It's up to the buyer to know what they're getting...

Last sale I went to, there were two people bidding on the the surface estate and the royalty of a single tract... the guy bought the royalties thinking he was getting the minerals (which were attached to the surface estate)... he won the royalties, paying 150 years worth of existing production. He screwed up.... paying 40K, the yearly production was less than a hundred bucks, and they'd eventually completely die.... The guy buying the surface, got the minerals, for 3K... plus several Haynesville Shale wells that are being drilled, that'll end up paying at least 1k/year.

The land tracts that I've seen up for sale, have no title opinion on them.... many are undivided interests. I hate und. interests.

mozarkian · #29 02/15/12, 11:59 AM

Having attended many courthouse sales here in MO over the years, here is some of what I have learned. Usually you can contact the attorney office handling the sale and find out the amount of the banks bid prior to the sale. To purchase you would need to be prepared to bid over this amount and to pay for your purchase at the time of sale, usually with a wire transfer from your bank to the attorneys bank or by a certified check. It is very important that you research the property thoroughly, either through the county recorder's office or by paying for a title search done before the auction date. This will give you information about irs tax liens or any other liens against the property and also give you a chance to do a drive by on the property to see if it is occupied and what the condition might be.
In 2010 I attended a courthouse sale in a southern MO county that looked like a bargain, (decent home, barns, 20+ acres) and the banks bid was around $30,0000. Upon visiting the recorders office, I discovered that the auction was actually selling the 3rd deed to the property and the existing 1st and 2nd deed would still be against the property after the sale. Needless to say, I did not bid. These sales are truly buyer beware, but if you do your homework beforehand, you can occasionally find good deals.

plowjockey · #30 03/02/12, 05:37 PM

Just as an update...

Even though the property I'm interested in, is not yet on the block, I attended my first Sheriff's sale yesterday, just to check it out. About a dozen people showed up, some looked to be regulars.

7 properties were up theis sale (held twice per month). The Sheriff simply announced what the opening bid is and goes from there.

No one bid up any of the properties, at least this day. Most were pretty near, or higher than the court judgement amount, $50k-95k, (judements $50k-144k) so they went back to the banks.

I still don't get it. One home had an opening bid of $79k, for a judgement of $73k. I drove by and looked at the house. They'd be lucky to get half that.

Is this just for juggling numbers and the bank, will really sell the home, later (now that they officially own it) as a foreclosure, for $50k?

Time to look at plan B, whatever that is.

Judy in IN · #31 03/02/12, 08:32 PM

Plowjockey,
I was hoping you would post your experience. We've had our eye on a couple of properties going on the block. One is abandoned, needs a new roof, burial of some old building foundations, etc, etc. The bank has a mortagage against it of $143K, more than the value of the house and land. Our Realtor told us that he believes it could be bought for $75K.

The OTHER property is a judgement sale. I've found court papers with Drug task force involved. I would love to have that property. It is 10 acres with a creek running through it, mostly pasture and a nice pole barn on it. The pole barn has power. The papers say the starting bid will be $45K. We may attend the sale, but I can't get finances ready by then. (4 days away)

Ken Scharabok · #32 03/03/12, 01:00 AM

Far as I know in TN if they find a meth lab at a hotel/motel they cannot rerent the room until all soft materials are replaced and the unit repainted.

I bought a single-wide which had been a meth lab and at closing has to sign an acknowledgement statement to protect seller.

I'm guessing same with apartments and rental houses.

Judy in IN · #33 03/03/12, 08:52 AM

Ken,

I don't know if you're talking to me, or not. Neither of these properties has been a meth lab. The 10 acre property has a barn only; no house.

**clovis** · #34 03/03/12, 09:02 AM

Quote:

Originally Posted by plowjockey

Time to look at plan B, whatever that is.

Hang in there, PJ.

A very wise and extremely wealthy old man once told me about foreclosure auctions....you might look at 1,000 auctions, but it only takes one good buy to make it all worth your time and trouble.

plowjockey · #35 03/10/12, 08:36 AM

Quote:

Originally Posted by clovis

Hang in there, PJ.

A very wise and extremely wealthy old man once told me about foreclosure auctions....you might look at 1,000 auctions, but it only takes one good buy to make it all worth your time and trouble.

Thanks.

There are probably some bargains out there, but the one we really want is nearby, that we want to make a rental, for MIL to retire in.

plowjockey · #36 03/10/12, 08:46 AM

Sheriff sale update.

I called Bank America REO, about the property I'm interesed in, that comes to Sheriff sale in May. I was looking to get some information about what they might want for the opening bid, what happens if no higher bids come in, etc.

Find out (at least for this property), that even though BAC holds the mortgage, the home is temporarily owned by an outside "investor", which I take, could be a group or wealthy individual.

The "investor" will set the opening bid, for the Sheriff sale. If there are no higher bids, the "investor" can either keep the property, or turn it back to BAC, to market, as a cleared foreclosure property.

Nothing can be simple.

I'm going to do some digging at the courthouse,etc, to se if I can find who the "investor" is.

Stay tuned.