Posted by Mike on December 04, 2002 at 22:47:51:
Hey Ron. I was not the only bidder, there were 5 of us including the lender. 4 of the 5 who qualified bid on the house. I would have ended up with the house if it wasn’t for the lender.
Finally bid on a house today at the auction - Posted by Mike
Posted by Mike on December 04, 2002 at 19:56:12:
but was outbid by the lender who owned the 2nd mortgage on the house. This was the first house I was interested in that actually made it to the auction block since I jumped into the auction game one month ago. My realtor told me that lenders in 2nd position show up about 50% of the time to protect their positions. I’m curious if this stat jives with what others have found at their foreclosure auctions??
At least it was fun finally getting to bid on a house. Hopefully we will win the next one…
depends on the equity position… - Posted by David Krulac
Posted by David Krulac on December 05, 2002 at 09:01:23:
if there is equity the 2nd will more than likely bid. if there is no equity then the 2nd will fold.
Juniors bidding to protect themselves … - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on December 04, 2002 at 21:32:02:
Mike-------------
It is true that a lot of the second lenders will protect their investments by bidding at foreclosures on the seniors. I don’t think I can give an accurate 50% for the foreclosures in which I have been investing, but the 50% number does not sound wrong to me.
Were you the only one at the auction other than the junior lender? If not, how many were there and how many bid?
Good InvestingRon Starr****