Posted by Rich-CA on February 11, 2008 at 13:30:19:
In order to become an REO, the property does sell at the auction. It sells to the Lender doing the foreclosure. They are the first bid and will bid the amount owed for the property. Any other bidder will out bid them and have to pay them off before they can take Title.
Bankruptcy is not the same as out of business and I believe someone bought their portfolio of loans, though I forget who did that.
Deficiency judgement & other questions - Posted by JP
Posted by JP on February 09, 2008 at 22:14:31:
I bought some rental property a while ago in South Carolina. It is now in foreclosure. I just got the judgement of foreclosure of sale papers in the mail. The lis pend was done in nov and the sale is set for early march. I paid 130K for the unit (still probably worth that), split into a first mortgage of 90k and a second of 32k. I put down about 5%. It says on the front page that “deficiency judgement is waived and sale is final on date of sale”. What does this mean exactly?
So…
thanks for any input!
J
Re: Deficiency judgement & other questions - Posted by Rich-CA
Posted by Rich-CA on February 10, 2008 at 22:46:15:
If it says “deficiency judgment is waived” that means they will be satisfied with the proceeds from selling the property and will not be going after you for the shortfall.
If the 2nd mortgage holder does not buy the property, then their lien is erased from the property title. However, they can come after you personally for the money owed.
If you got this far, you can expect your credit to be trashed for several years.
Re: Deficiency judgement & other questions - Posted by JP
Posted by JP on February 11, 2008 at 09:55:24:
What if the property does not sell at the auction and goes REO? The 1st & second are both with the same mortgage company who is American Home Mortgage who went bankrupt last year.