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View Full Version : Those "Notice Of Sale On Foreclosure" auctions



Stephen Tashiro
12-04-2011, 11:56 AM
I'm not interested in real estate investing, but when I use newpapers to protect a surface from paint splatters, I sometimes read some of those "Notice Of Sale On Foreclosure" entries. I once asked a real estate investor friend about them and he said that banks who foreclose almost always appear as bidders at the auction and bid the amount that they are owed. So, on paper, the banks never loose money at this stage of the process. If they lose money, it will be later when they try to sell the property in a non-auction manner.

Is this the way those things work? Are they mere formalities?

Rich Engelhardt
12-04-2011, 12:34 PM
Yep- that's pretty much how it works.
When you see someone bid exact amounts - like - $179,546.28 it's a bank bidding what the note is.

Steve Costa
12-04-2011, 5:17 PM
I live in a different part of the world where you can buy a week at a time share for between $100 & $500. We have had proposed developments where the developers spent in excess of $750K for 50 acres for one property & $1.5 million for 1800 acres. These developments were forclosed on and are now selling for less than half the last purchase price!!!

John Coloccia
12-04-2011, 6:13 PM
Don't you pay a commission at auction? When the property doesn't sell, the bank just pays the commission for buying it's own property and takes it in the shorts twice?

David Larsen
12-04-2011, 7:06 PM
Don't you pay a commission at auction? When the property doesn't sell, the bank just pays the commission for buying it's own property and takes it in the shorts twice?

From what I have seen, most of the time a Sheriff's Department conducts the sale. They may have some small associated fees, but normally there isn't a commission per say.



...And reference the land developments, I think banks are more likely to let land go vs. houses. The land usually has specials and taxes against them that are coming due if there has been any improvements done to develop the land.

Rich Engelhardt
12-05-2011, 6:10 AM
John
It's going to vary state by state.
In Ohio, the county sheriff holds the sales on the court house steps at the county seat.
There are some charges associated with the sale, appraials and some paper work,,,nothing major.