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On Feb 22, 12:35 am, "Junior" <Jun...@home.com> wrote:
> "Scott" <fskenn...@gmail.com> wrote in message
>
> news:1172080218.741459.102040@v33g2000cwv.googlegroups.com...
>
> > Who do you think will buy the house at the sherrif's auction?
>
> > Bank 1 - $ 415,000 (foreclosing entity)
> > Bank 2 - $ 50,000
> > Probably $ 6,000 in back taxes
>
> > House probably worth $ 435- 440,000
>
> > What is the typical amount a bank would be willing to lose to avoid
> > buying a house?
>
> > Thanks,
> > FSK
>
> Assuming Bank #1 is holding a 1st mortgage and Bank #2 is holding a
> second. Being bank #1 is the one foreclosing, they have a judgment for
> the total amount owed. They will probably bid the judgment as it will
> not cost them anything to do that. Bank #2 will get wiped out in the
> process. If bank #2 was to bid to protect their mortgage, they will need
> to outbid bank #1. It would be to bank #1's advantage to stop bidding
> around $$400K to $410K. That way, the least they lose is $5K to $15K and
> bank #2 takes on any remaining risk of ownership and the expense of
> sale. If bank #1 had played the game right, they would have waited and
> let bank #2 foreclose on their second mortgage. That way, the sale on
> the courthouse steps would have still been subject to the first
> mortgage.
I'm still interested in buying the house. I bid $ 430, but the short
sale was rejected by Bank#1, probably because of the outstanding $ 50
lien of Bank #2.
Given the details, what would you suggest? Thanks.
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Re: Which Bank Do You Think Will Buy this House At The Sherrif's Auction?
