Posted by James on April 22, 2005 at 12:10:19:
Hello Luke,
Where are you located in NC? I am a Real Estate agent. I am focusing on helping Investors.
James
opening bids at foreclosure auctions - Posted by Luke-NC
Posted by Luke-NC on April 18, 2005 at 01:16:28:
I have been trying to figure this out for the longest time.
I work a short sale only to be denied due to my offer being too low.
The lender then takes the property to auction, and the opening bid is LOWER than what my offer was.
OR…
The lender takes back the home and immediately lists it below my short sale offer.
Example, I offered $525k on a home that was worth $630k, it was denied as being too low. I had a buyer at $580k.
The lender acquired the home and then sold it 2 WEEKS later for $355k.
I must be talking to the wrong people at these lenders, that seems to be the only reason.
I have many times seen lenders set the opening bids at foreclosure auctions much lower than my short sale offers.
It seems the person or department handling the loan once it is in foreclosure heading to sale is totally different from the typical loss mitigation department?
Re: opening bids at foreclosure auctions - Posted by Sgt.Sausage
Posted by Sgt.Sausage on April 18, 2005 at 13:48:12:
It’s a case of “left hand, right hand” – the left hand doesn’t know what the right hand is doing. Likely the short and the auction were handled by two different folks, possibly in two different departments/divisions, and the left hand doesn’t know that once it gets to auction, that the right hand is planning on “eating it anyway”.
Who know? That’s my guess. Good as any I suppose.
Re: opening bids at foreclosure auctions - Posted by Kevin IL
Posted by Kevin IL on April 18, 2005 at 09:06:53:
I gave up trying to understand why banks do what they do. Instead I focus on how to beat them using their rules. With $225k at stake why didnt you buy it at the auction? Certainly you could have found a money partner if you didnt have the cash.
Re: opening bids at foreclosure auctions - Posted by luke-NC
Posted by luke-NC on April 18, 2005 at 16:01:09:
on that particular property the auction started at $600k
I only found out later that they once they acquired it, they listed it at $355k and someone scooped it up.