All Forum Posts by: Lang Le

Beside Title search, Title insurance, Real estate tax, HOA fee, recording fee etc...do I have to prepare anything else for the closing after the Trustee Sale Auction ? If it is a cash transaction then how long is take for the closing ? Do I have to get my lawyer or the auction house (a law firm) will handle all these paper work ?

Thanks

K. Marie Poe said:

"If the property is really worth $350K, then the property will not be sold at trustee's sale for $240K. Other bidders will likely bid higher, and if not the lender will bid to take it back. A dropped minimum bid usually gives some indication of lender's idea of value. Are you sure the $350K loan is in first position? "

I have the title search and  its Deed of Trust reveals that the property  has a note around 360K as of Mar 2012,  and then the owner declared  BK  around Sept 2013, so  my guess the balance must be somewhere 350K

Wayne: what you said is not true in my case, the FMV of the house is very close to the mortgage balance (around 350K), but the starting price is 194K and my winning bid is 240K.. Do you see anything wrong here ?

Arlan: then why the bank set the  price closer to the  mortgage balance, in this case around may be 330, 340K, so they don't have to worry that some third party will  buy the house at cheaper price 

Who establish the starting bid price  (minimum bid)  in a Trustee Sale auction ? Is this price relate to the mortgage balance ? 

I see a case where the mortgage balance is 350K and the starting bid price is 200K. What happen if someone win the bid at 201K? Will the bank accept to loose almost 150K ?

Thanks

Wayne, You're right, this statement is in Auction.com website, I don't dare to even take a look thru the windows, and even I placed bid on the house but I still feel bad  for the owner who lost it. 

Thanks for all your help on this issue. It is a big help to understand  this complicate matter

Wayne/John : Thank you for the clarification. So they are two difference auctions, in my case is a Trustee Sale, therefore if no upset bid submit during 10 days period (NC law) then I will be a new owner of that property.

Next question: Can I "visit" the house after I been declared as a winning bidder . I drove by the house but don't even know the house is occupied or not.  If the owners are still there,  what should I do ?

John, Thank you for your input. So based on what you told me, I only have to deal with the new Trustee (law firm that held the auction). Am I correct ?

John: how the lender make a counter offer ? Is it call a upset bid ? If the bank offer is a upset bid then the bank is just a third part bidder like the rest of us. Right ?

In my cage, the auction Trustee indicates that the property will be sold to the highest bidder assume that it is above the starting set price (194K) , no where I read that it will need the approval from the bank. Am I correct to assume that the bank cannot reject my bid based on this auction notice?