Anyone here ever been to a courthouse step foreclosure auction?

[quakerboy]

My aunt is losing her home, and I am wondering if there is any reason to go. I have a fraction of what is owed. I can't see it going for so low, but I have no idea. Anyone been to one of these? Are they truly highest bid gets it, no matter what, or are they rigged for a minimum, or what?

[Bunny]

1. Well, I don't know one thing about this subject, but I would think that her mortgage company

is not going to let it get sold for less than the outstanding debt. So I would think there'd be a minimum of at least what is owed on the house. :shrug:

[flvegan]

2. I've been to hundreds...in Florida.

The state your aunt's property is in may be different. In Florida, there's no point unless one can pay the amount of the Final Summary Judgment (what the bank foreclosed plus fees and costs) because that's what the bank will almost always bid up to. Also in Florida, you have to post a percentage of the bid you make immediately. No checks. Most folks that show up to bid do so with certified funds.

Also, were this Florida, were you to buy this property at sale and deed it back to your aunt, any liens that were also on the house that were wiped out in the foreclosure come back and attach to the property again. You'd have to keep the title in your name for a while (straw partner).

All that said, there's *always* the chance that the bank will fail to show. I've personally known law firms that have forgotten to send a runner to bid at the sale, and the property has indeed been sold for $100. I've also seen instances in the circumstance where the attorney has tried to get that sale overturned, and the judge has told them to go screw.

Were it my aunt, and I had a chunk of change stocked away, I'd probably go and try bidding (please get the rules and requirements for your state/county first) just in case the bank didn't show. Better than forever wondering "what if"

I'm sorry that your aunt is losing her home. I hope that should you decide to go bid, you get very lucky.

[quakerboy]

3. I do not know exactly how that works

But it would seem like a losing proposition to bid up to the foreclosure amount. There are 2 loans. Together, the total owed is damn near 2x what I would say the property is worth on the market right now. And I think I am fairly educated on that, seeing as my wife and I have been extensively looking for places right in that range and locality for over a year now.

If I were buying it, it would stay in my name for a long time, possibly forever. I love my aunt and family dearly, they are the kindest people ever. If karma was worth spit, they would not be in this situation. But even if all debt was forgiven today, I think it would just happen again in a few years.

I appreciate your thoughts in this. I have maybe 1/10th of the fair market value saved, which was not enough to even get them paid up and prevent the foreclosure. And nowhere near close enough to bring them to a sustainable point.

The timing is terribly ironic. I will be closing on my first home at 8:30 tomorrow, and at 10 my aunt will be losing hers.

[quakerboy]

4. That was interesting.

It was a private auction, held at the courthouse steps for unknown reasons, but not with any official sanction, as the guards made quite clear when asked where it was being held.

It was quite sparsely attended. There were 2 auctioneers representing different companies. And there were 2 bidders who do this for a living. Everyone else knew each other, the bidders had lists and knew what they were offering on long before arriving. There was one quiet, sad woman who I suspect was there for very similar reasons to me, as she seemed similarly clueless about the whole thing.

I don't know whether its an Oregon thing, or just because its a private auction, or what, but the trustee can submit a paper bid on these auctions, which basically sets the minimum bid for any other potential buyer, so they do not have to sent a runner to bid. Which makes the likelihood of a $100 steal virtually nil. You have to have cash or certified funds as a check made out to the trustee or to yourself, verified by the auctioneer, for the full amount of your bid. No percentage, pay in full.

One of the bidders present showed me my aunts property on the list. It was not high on either bidders priority "get" list, and they both declined to bid on it at all, with us there. Minimum bid slightly higher than what I thought was fair market value, but way under the amount owed. Way over the miniscule amount in my pocket, so the trustee's bought it back at the minimum. Apparently they are often postponed, but hers was not. The bidder also gave me some tips on how to wheedle the trustee when they serve the eviction notice, to get softer treatment, apparently you can make some deals for either extra time or even they give you cash to move, as it can be cheaper for them than fighting out a painful eviction.

He also told me where to look online for the particular companies involved, to see it progress through their systems.

Man. I feel so bad for my aunt. She has only had to move 3 times in her life. Not like me with my dad getting itchy feet every 2 years or so.