Nobody Showed At Foreclosure Auction, How to Buy Now?

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Nobody Showed At Foreclosure Auction, How to Buy Now?

William Coet
Lititz, PA · Member since 2013 · 595 posts · 272 votes

Hello,

The bank (HSBC USA) held a foreclosure auction last week and nobody showed.  The bank bid in the 40's.  

How can I buy this property?

Thanks in Advance,

Bill

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Adriese Williams
Rental Property Investor · Durham, NC · Member since 2015 · 69 posts · 32 votes
7y
  • Go back to courthouse, or place of auction
  • put in upset bid, usually 5% over current bid, 
  • wait 10 days,
  • get ready to purchase, if no one upsets your bid.
  • This is the process in NC, check your state regulations
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  • Adriese Williams
    Rental Property Investor · Durham, NC · Member since 2015 · 69 posts · 32 votes
    7y
    • Go back to courthouse, or place of auction
    • put in upset bid, usually 5% over current bid, 
    • wait 10 days,
    • get ready to purchase, if no one upsets your bid.
    • This is the process in NC, check your state regulations
    2Reply
  • William Coet
    OP
    Lititz, PA · Member since 2013 · 595 posts · 272 votes
    7y
    Originally posted by @Adriese Williams:
    • Go back to courthouse, or place of auction
    • put in upset bid, usually 5% over current bid, 
    • wait 10 days,
    • get ready to purchase, if no one upsets your bid.
    • This is the process in NC, check your state regulations

     At first glance, New York State does not allow upset bids.

    0Reply
  • Tchaka Owen
    Real Estate Agent · Merritt Island, FL · Member since 2017 · 974 posts · 1k+ votes
    7y

    @William Coet - contact the attorney representing the bank and let him/her know you want to buy that property. 

    1Reply
  • William Coet
    OP
    Lititz, PA · Member since 2013 · 595 posts · 272 votes
    7y
    Originally posted by @Tchaka Owen:

    @William Coet - contact the attorney representing the bank and let him/her know you want to buy that property. 

     Thanks Tchaka,

    Any idea how to find out who the attorney was/is?

    Thanks!

    2Reply
  • Tchaka Owen
    Real Estate Agent · Merritt Island, FL · Member since 2017 · 974 posts · 1k+ votes
    7y
    Originally posted by @William Coet:
    Originally posted by @Tchaka Owen:

    @William Coet - contact the attorney representing the bank and let him/her know you want to buy that property. 

     Thanks Tchaka,

    Any idea how to find out who the attorney was/is?

    Thanks!

     Check the docket. Every FC has to go through the process. You might have to search the address of the property to find the name on title, then search court records for the name. But it will be there. Good luck!

    0Reply
  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    7y

    It's an REO now... and should be listed with a REALTOR before too long. Keep an eye on the MLS. Most lenders won't negotiate directly with prospective buyers. They want their REO properties listed in order to obtain max exposure and sold retail.

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    2Reply
  • William Coet
    OP
    Lititz, PA · Member since 2013 · 595 posts · 272 votes
    7y
    Originally posted by @Tom Gimer:

    It's an REO now... and should be listed with a REALTOR before too long. Keep an eye on the MLS. Most lenders won't negotiate directly with prospective buyers. They want their REO properties listed in order to obtain max exposure and sold retail.

    Thanks Tom,

    Just wondering, if the property had no bidders and the bank bid 40k at the auction, wouldn't this make the bank think the demand is low and make them more willing to accept an offer before taking on the risk of extended holding period costs and a realtor commission?

    0Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    7y
    Originally posted by @William Coet:
    Originally posted by @Tom Gimer:

    It's an REO now... and should be listed with a REALTOR before too long. Keep an eye on the MLS. Most lenders won't negotiate directly with prospective buyers. They want their REO properties listed in order to obtain max exposure and sold retail.

    Thanks Tom,

    Just wondering, if the property had no bidders and the bank bid 40k at the auction, wouldn't this make the bank think the demand is low and make them more willing to accept an offer before taking on the risk of extended holding period costs and a realtor commission?

    No......they do this every day sand Every REO goes on the MLS or on an REO auction site....auction.com, hub up, etc.

    They will Not talk to you. 

    0Reply
  • William Coet
    OP
    Lititz, PA · Member since 2013 · 595 posts · 272 votes
    7y

    If the bank bid 40k at the auction, does that mean they would have accepted a bid of 40k from a bidder?

    0Reply
  • Eli Lederman
    New York, NY · Member since 2018 · 215 posts · 50 votes
    7y

    Once auction is over, it is over.

    It will be put on MLS soon usually

    0Reply
  • William Coet
    OP
    Lititz, PA · Member since 2013 · 595 posts · 272 votes
    7y
    Originally posted by @Eli Lederman:

    Once auction is over, it is over.

    It will be put on MLS soon usually

    Once it with MLS or auction service, will the bank take less than what they bid at auction?

    0Reply
  • Eli Lederman
    New York, NY · Member since 2018 · 215 posts · 50 votes
    7y

    Usually less, especially if mortgage is underwater. 

    0Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    7y

    Our speculation about what the bank will take, is just that.  What is the property worth?  The bank will want what it is Worth.....what they had to bid it back at the auction is irrelevant.

    1Reply
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