Lean balance is 40% of market value, expect major repairs?
I'm looking to buy my first auction property and I could use additional opinions on a specific property.
The house FMV is $175k which I know is accurate since I own several other rentals in the area.
Looking through the county records I found that Chase is the lender and the loan was for $75,000 in 2013.
In 2014 a 2nd lien was issued for $200,000 but shortly after it was also removed. It seems like the $200,000 lien was issued as a collateral for a bail bond..
The Auction.com report actually shows the $200,000 lien as active but I'm pretty sure the county records are accurate since its clearly states it was removed and I can actually see the document stating that.
I also know that the property was converted to be a rental property from the language of the mortgage documents which were also recorded in 2013.
My main question is why would they have to foreclose if they could have easily cover the balance with selling the house?
does it mean lots of damages? there's no signs of any damage to the outside of the property besides some minor issues.
Is it possible that the $200,000 lien is still in place?
what would your max bid price with all of the above in consideration?
What else should I consider when bidding on this house?
Thanks!