first of all- make sure the loan is in the first position. If it is, good. If not, and your the successfull bidder, you will only take over the home owners position- subject to senior liens. Also- what are the terms of the sale- in Utah you need $5000 cert. funds to bid and the balance is due in 24 hrs. (certified funds). So you pretty much need the money liquid prior to the sale (or have lines of credit available)- Also check to see if there are back taxes or federal liens on the property- those can survive after the trustee’s sale.
Hi folks, I need some advice. I was looking through my local paper at the Trustee’s Sales and I noticed a house in that going up for auction after the owners defaulted on their $240,000 loan (original loan amount). I don’t know the current balance, but the loan was made in 1990. Comps for this house are currently going for around 320-350K. The problems I have are these: I am currently contracted to buy another home that is being built and I will not close on that one until sometime in January. The contracted house is to be my personal residence and I am buying it the conventional way and I am in the process of trying to scrounge up the 5% down that has to be verifiably my own money. I don’t think I would have a problem reselling the auctioned house, but I don’t know that I could close on it prior to closing on ‘my’ house and I think my lender would have a problem with that. The other problem is that I also noticed that the house that is going up for auction is currently owned by my cats’ veterinarian. I have a little bit of a moral issue with that.
I’d like to get some unbiased opinions as to whether I should pursue this further. Also, what sort of research should I do prior to deciding to bid on the house?
You alos need to know if there are any other liens on the property. Is it currently for sale and likely to sell at the listed price (if there is equity the guy is a fool to lose this without selling it)? IF it’s not for sale, talk to him and see what’s up. It’s all public record now. (Check the aritlce in the “How to” section here on Getting on same page with Seller before you talk to the vet.)