who buys houses at auction in IL? - Posted by BIgV

Posted by JT-IN on February 01, 2008 at 06:16:50:

Without looking at a specific case one would determine that the other bank would be a secured defendant, one that had an interest in the property as a result of a Jr lien. Or, the Jr lienholder could have brought the action, (a lawsuit judicial states), and the Sr. lien could be making the purchase, but this is less likely.

Also, loan servicers will bid for the underlying lien owner, then assign the bid to the lender who actually owns the paper, in some instances.

In any case, the lender who is buying is now in a position of an REO, who will later sell the property, and in many cases for much less than they bid at the auction. Hard for laymen to follow this logic but it has to do with being able to pursue def judgment against the debtor, as I see it.


who buys houses at auction in IL? - Posted by BIgV

Posted by BIgV on February 01, 2008 at 05:34:44:

I have access to tax database that shows buyers of houses that were auctioned off.

What I find curious is that many of the homes were bought by a BANK or a lending institution. Now, I understand that if Chase (for example) is auctioning a house off and Chase kept it after the auction, it just means that the home went back to the lender.

However, if Chase auctions it off, but another bank bought it, what does that mean?

Ideally, I’d like to find out who bought the place. Does another bank buying the property indicate that the investor bought it in the name of a trust?

Re: who buys houses at auction in IL? - Posted by IB (NJ)

Posted by IB (NJ) on February 01, 2008 at 08:22:24:

FYI…Chase doesn’t own the home until they bid like everyone else. They own the defaulted note and thus have the legal authority to have the sheriff conduct a sale (in judicial states) to sell the property and recoup their investment. If no one (except the lender/plaitiff) bids higher than the initial bid (usually $100 over the amount due - at least here in NJ), then the lender wins the bid and takes the house.