All Forum Posts by: William Coet

I'm looking at a property on Auction . com that has twice as much debt as it is worth (I am very familiar with the market where it is located). The property is going to be auctioned off at the county courthouse. Will the bank accept bids lower than the debt on the property? There is no credit bid (upset bid) stated on the auction webpage

Thank you!

When I hold a foreclosure sale, I usually try to do my credit bid at about 90% of FMV, regardless of what the balance of the loan is. My objective is to not take the property back into REO and instead, entice 3rd party bidders. That's just my objective so, other asset managers may have different formulas or strategies.

Thanks Ron,

The debt on the property is 100k more than it would get on the market. How does this happen? A bad bank appraisal?

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Originally posted by @Sanjay Aiyar:

Originally posted by @William Coet:

Originally posted by @Sanjay Aiyar:

Usually auction.com says right on the property's auction webpage that they give you a limited warranty deed, which simply says the seller is not aware of any liens imposed while they held ownership (but says nothing about prior to that time period). You need to run a title search before a foreclosure auction.

Are you sure this is a foreclosure? sounds like a REO deal with the bank, thus the ability to put a reserve price. If it's REO then i would google the address and see if it's simultaneously listed. That price (or close to it) is likely the reserve. Either way, it's irrelevant since you should calculate your max bid and stick to it.

Thanks for the reply! How is a foreclosure different than an REO? In this case, the property went to auction at the courthouse and nobody showed up. It was then put on auction. com. It has been auctioned several times now and the reserve has not been met.

Foreclosure auction is when the mortgage payment is delinquent and it goes to sheriffs sale. The lender will bid up to loan balance. If the auction ends anywhere between the opening bid and the loan amount the bank would have been the winner. Then it becomes "real estate owned" or "REO". That means the bank has taken possession by winning the auction and has listed it for sale. It's a regular way sale at this point. They have a price they want to get paid. The fact that it was posted on auction.com just means they want to sell it in auction format. It would be like you posting something on ebay.

Thanks Sanjay, I'm looking at another property that is scheduled for auction at the courthouse next week. The amount of loan is $254,000 but I know for a fact that it would only sell for around $130,000 on open market and nobody will bid $254,000 at auction. Will the bank bid $254,000 even thought it is worth much less?

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Originally posted by @Sanjay Aiyar:

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Thank you!

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Nice transom window above kitchen cabinets.

1 Vote

Hello,

-Can leases be used instead of tax returns to prove income to lenders?

-For an equity loan on an income property, can leases be used by themselves to prove income?

-Do banks always require tax returns? Do private lenders always require them?

Thank you in advance for any replies.

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Hello,

Can realtors view listings before the public?

I'm interested in a market where good properties are getting multiple offers very early, and I'm trying to determine how to gain advantage.

Thanks

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More pseudo-intellectuals. The overall quality of academic researchers is decreasing. Combine this with a totalitarian mono-culture that suffers from a lack of ideological diversity on college campuses and you can end up with terrible policies that don't really benefit society.

The facts have to be stated over, and over, and over to fight these ideologues.

3 Votes

Good luck to you on this venture! Will you be preforming the labor, subcontracting, or both?

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All Forum Posts by: William Coet

William Coet has started 207 posts and replied 570 times.

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