Posted by David Krulac on September 15, 2001 at 13:34:38:
but now changed. The lender bids $1, then if anybody bids more its in $5,000 incements until the lender stops or the other bidders stop. Last bid in gets the property, but I have not seen any lenders stop before reaching the owed amount. Any third party bidder had to out bid the lender for the full boat.
Opening bid at foreclosure. - Posted by Winston
Posted by Winston on September 14, 2001 at 08:32:37:
Does anyone have a good formula for estimating the opening bid used by the foreclosure attorney. I was considering using the mortgage loan amount, term of 30 years, 6 months past due and a 10 % rate of interest, and 10 % for attorney fees. Does this sound like a fair method?
Re: Opening bid at foreclosure. - Posted by Tarheel T
Posted by Tarheel T on September 14, 2001 at 18:52:25:
Winston,
Go to your courthouse and find the relevant file.
From the info in this file you should be able to make an approximation. But you should find the phone number of the trustee who is handling the sale. Call them the day before the sale. They should be able to have an opening bid amount then.
Tracy Thompson
Re: Opening bid at foreclosure. - Posted by Ronald * Starr
Posted by Ronald * Starr on September 14, 2001 at 15:53:01:
Winston------------
I think you got good advice. I agree with Joe Kaiser, call to find out what the bid will be. If they drop the bid to below the amount owed, ask if the lender is planning to bid up above that amount. Sometimes we get a good deal when the published estimate of the bid is high but the bid is dropped and nobody else shows up for the sale.
Your approach does sound sound to me. However, you need to adjust them for the local conditions. Find out what fees are being included by the lawyers – you might find that in the lawsuit case file – and use a reasonable estimate of the interest rate for the loan. The length of nonpayment may be in the casefile.
Good InvestingRon Starr********
Re: Opening bid at foreclosure. - Posted by winston
Posted by winston on September 14, 2001 at 14:11:42:
Sorry, I think dewCO did answer my question.
Re: Opening bid at foreclosure. - Posted by dewCO
Posted by dewCO on September 14, 2001 at 11:06:20:
YEs, they usually bid what they need to get out of it to make themselves whole and cover their costs.
The closing bid is crucial not the opening bid - Posted by David Krulac
Posted by David Krulac on September 14, 2001 at 10:38:53:
The most recent sale that I went to there were many properties offered, however one one was sold NOT to the lender. The lender has a bid, say $100,000 which includes the loand and costs and usually will not stop at less than that. Even though the biding could start at $10,000, the lender has no intention of leting the property go for less than $100,000! they will keep bidding until the $100,000 is exceeded or evrybody else stops bidding, in which case they get the property.
Why bother . . . - Posted by JoeKaiser
Posted by JoeKaiser on September 14, 2001 at 10:13:22:
There are times when you have no choice but to guess. This isn’t one of those times. A better method for “estimating the opening bid” is to pick up the telephone and call the attorney to find out.
Joe
Re: Opening bid at foreclosure. - Posted by Rob
Posted by Rob on September 14, 2001 at 15:22:35:
It is hard to figure, unless you call. Don’t try to figure it out. I have seen the opening bid reduced to $1, and sold for $1
Rob
Re: The closing bid is crucial not the opening bid - Posted by Tarheel T
Posted by Tarheel T on September 14, 2001 at 18:58:14:
David,
Very interesting. Where I am, and I will guess that you can figure it out, the lender’s highest,best and only bid is what the bidding starts at. If anyone bids a dollar over, the lender is off the hook.
Tracy Thompson