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"Scott" <fskennedy@gmail.com> wrote in message
news:1172171871.828695.42690@s48g2000cws.googlegroups.com...
> 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.
>
I suggest, you go talk to bank #2 and find out their intentions. Offer
them $15K for their 2nd place note and see what they do. The fact that
Bank #1 rejected your offer indicates that they are prepared to wait
till it hits the courthouse steps. They figure you will be there. If you
are, they will recover their entire judgment and Bank #2 will have to
decide if they are going to shit or get off of the pot. Either way Bank
#1 is in an excellent position.
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Re: Which Bank Do You Think Will Buy this House At The Sherrif's Auction?
