Sheriff Sale does anyone know how they work.

Discussion in 'Chit Chat' started by gimp570, Jun 20, 2009.

  1. gimp570


    I am interested in buying a house that is going up for Sheriff sale. Does anyone have any experience with this? The people that live there have not payed the mortage for over 1 year. They owe 307,000 bucks on the house. The house was for sale for over 1 year for $250,000 and no bites. They have about $5K in liens on the house. Its going up for sheriffs sale at the end of the week. How do these things usually go down at the sheriff's sale? With the current market conditions, does anyone have a ballpark idea for what these homes go for at sheriff's sale....appraised value, portion of appraised value, current mortgage amount??
  2. Google sheriff-sale first. Location dedicate to its price. Cash or cash equivalent sale only.
  3. gimp570


    I know that you need to put 10% down on day of sale...but what would be your ballpark guess on how much a house like this in these market conditions would go much is the minimum that they would except...

    whats a good educated ballpark number?
  4. 1) $250,000
    2) 10% to 20% off of the $250,000
    3) If you're a real estate "rookie", do not get involved with sheriff sales. There can be nasty structural and financial surprises with those types of houses that you may not be able to deal with. :cool:
  5. I live in Florida. Your state may have different rules. I remember about June 2008 my neighbors and myself attending foreclosure proceedings involving some properties near our homes. The process was fast and efficient with representatives of banks that likely held the mortgages buying foreclosed homes for $ 10. All paperwork was filled out in advance, the proceedings happen every week and the professionals do this a lot so it proceeds quickly. We walked out with a banker and he was kind enough to answer a few of our questions.

    We asked the banker if we were to offer to buy the house for say $ 1000 what happens? He said he was prepared to offer some predetermined price. The predetermined price is related to the mortgage value held by the bank. So basically you have to pay the bank about the value of the mortgage.

    I remember $ 10,000 was required at the time of sale but the balance is required later the same day so you have to have financing ready for this deal.
  6. gimp570


    Sale is friday...

    I am hoping it goes cheaper than 200K

    will see
  7. Do not bid, wait until it is over. Likely won't sell in this market, bank will have to buy it for what is owed. Go back to that bank and make an offer for the paper. Offer 120 k and don't blink like some lightweight piker.
    They may scoff, if so you walk. Wait 3 months and offer 110k. Be like William Shatner in the back of the Priceline van.

    Rennick Trump out:cool:
  8. gimp570


    Thanks....thats good advise...

    will see how things go when i get there.....But this sheriffs sale seems like a complicated thing...
  9. I have bought many properties at a "trustee sale". In some states "foreclosure sales" are handled by a "trustee". Others the sheriff handles them.

    Here's the first thing you need to know. The rules are different from state to state, and from county to county within a state. You need to know the rules in your county. Since you don't, don't bid.

    Next, there are typically no warranties with a sheriff's sale, as there are with more routine types of sale. So if a title problem should crop up later, you got a problem.

    Then, most trustee sales, and sheriff sales I have bought properties at required CASH on the spot. In fact, some sales require proof of cash in the form of cashier checks in the amount of your bid before you bid.

    The initial bid will be in the amount of the mortgage. If you bid less everyone will just look at you. It's a non-starter.

    One problem here is that you definitely need to search the title. The sale could involve a second for instance, and IF you buy you would buy with the first mortgage remaining as a lien on the property. You don't sound like a guy who know the condition of title here.

    Buying at a sale is an area for pros. If you're not one, don't. Wait until the bank takes it back. Then make an offer on the property. Then you will able to inspect the property, get a mortgage, etc etc. In short, buy the property normally, and probably buy it under market. As a matter of fact, there are fewer deals these days at the foreclosure sales because the value of the first mortgage is too high relative to the property value. You can usually get a better deal by waiting for the mortgage holder to take the property back, and then making an offer.

  10. gimp570


    Its does seem a risky way to buy a home...

    i am still going to check it out
    #10     Jun 24, 2009