Posted by Kawika-CA on December 14, 2004 at 20:02:37:
I may have not been clear. Those are 3 properties I researched not bought. As an investor I would never pay that much which is why the trustee’s sales are pretty much a waste of my time right now so I’m working the equity purchase, before the sale, side.
At foreclsosure auction, who keeps the overbid? - Posted by Dennis
Posted by Dennis on December 13, 2004 at 13:34:46:
I was wondering who gets to keep the overbid at auction. If there is a 1st of 150K and a 2nd of 50K and a property is auction at 225K…say close to FMV…who gets the 25K remainder? Unbelievably, here in Sacramento, homes are being bid almost up to FMV at auction.
Believe it - Posted by Kawika-CA
Posted by Kawika-CA on December 14, 2004 at 16:04:28:
Here in San Diego I picked 3 trustee sales at random last month and they sold for 85%, 95%, and 98% of FMV. That’s why trustee’s sales are pretty much dead for investors right now but in 2-3 years we’re back in business. Best to go after equity purchases to survive until the trustee’s sales pickup again. By pickup I mean %/FMV is more reasonable.
overbid - Posted by jasonrei
Posted by jasonrei on December 14, 2004 at 09:19:46:
I believe all the liens get paid in order. If anything’s left the homeowner gets it. The trustee, I believe, sorts this all out.
usually nothing left… - Posted by David Krulac
Posted by David Krulac on December 14, 2004 at 06:00:48:
after paying real estate taxes, state and federal taxes, judgement, liens, and attorney fees.
At foreclsosure auction, who keeps the overbid? - Posted by Bill H
Posted by Bill H on December 13, 2004 at 16:03:44:
Normal progression is:
First TD foreclosing:
Foreclosing TD gets paid in full, all charges, costs, etc.
Next Td or lien gets paid. If sufficient funds, it is paid in full.
Next TD or lien gets paid, If sufficient funds it is paid in full, etc.
Down through all the liens, etc. THEN and only then is any overage paid to the delinquent owner. Seldom do they get anything.
Good Luck,
Bill H
The Property Owner, in most states (nt) - Posted by JT-IN
Posted by JT-IN on December 13, 2004 at 15:00:09:
$
At those prices… - Posted by IB (NJ)
Posted by IB (NJ) on December 14, 2004 at 17:30:08:
what’s your plan for the properties? Just curious.
Re: At those prices… - Posted by Dennis
Posted by Dennis on December 16, 2004 at 12:40:52:
My plan for the properties is just as Kawika, buy during pre-foreclosure…before it goes to sale. Ideally I would like to buy with a short sale. That was the reason for my original question. I was trying to figure out what would be the interest of the 2nd to do a short sale if they knew that if they went to auction here in CA it was most likely that they were going to get their full obligation repaid since the auction sales are going at FMV. Maybe the condition of the house might influence whether FMV is 95% or 85% but I doubt (although I’ve yet to verify this) that a lender (1st or 2nd) will take much of a discount since the Broker Price Opinion will likely show a large amount of equity in any home here in CA that has appreciated 20% in each of the last 2 years. Maybe on the high-end homes they may be more flexible since their carrying costs are higher and these homes have had increasing listing wait periods until sold. Meaning that the higher end homes (750K and up here in Sacramento) have been in the MLS a lot longer than before. The inventory of these homes has increased significantly lately because they are not selling as quickly as before or as compared to the 300K homes.