Thread: House Auctions

Originally Posted by 1stHome

I know when we go for the auction you have to have 10% down in cash (which we can provide) and than 10 days later pay the remaining. Can the remaining be paid with a loan?!

Sure it can... the sheriff (county official) doesn't care where the $$ comes from, just that the $$ is there. So if you are pre-approved, and can get the loan in time (which is a VERY HARD THING to do, when conventional lending is involved) no one cares. They will ONLY care, when you show up without the $$$. 10 days means 10 days! You don't come up with the 90%, you lose the 10%, and it goes back to sale the next week.

Originally Posted by 1stHome

Is this a different kind of loan I take out instead of house one?!

Umm?? Sort of confused with that question. If you could get a signature loan, then go for it. If you can get a BOAT loan that will cover it, then go for it... (Though you will need a boat as collateral.) A loan, is a loan, is a loan... Money is given to someone, interest is collected, and the loan proceedes are paid back according to the note terms. The only difference between a home loan vs. a boat loan vs. a signature loan vs. a car loan vs ... is what is held as collateral. (A signature loan has no collateral, just your "word" that you will pay it back.)

Hope that helps.

Later!

What state is this in; I'm curious about the 10 days later to get the money. In Washington State you need cash at the day of Auction. You need to show up with proof that you have the money to even bid.

It's in Wisconsin, you have to have 10% down and than the remaining amount of the money 10 days later.

We want to take a look at the place, but since it is out of our price range, our realtor won't take us through....We know its out of our range, but if we were to go to the auction and get it for much cheaper it would be quite an advantage.

I know a family friend who went to an auction for a house that was listed for 100,000 and got the house for 20,000

Originally Posted by 1stHome

It's in Wisconsin, you have to have 10% down and than the remaining amount of the money 10 days later.

Heyas Neighbor...

Originally Posted by 1stHome

We want to take a look at the place, but since it is out of our price range, our realtor won't take us through....

So is the home abandoned?? When I USED to go to the auctions, in Milwaukee, I learned a lot of techniques that the "regulars" used to get into houses... Though I don't think that they were ever listed. Some ranged from paying the "inhabitants" a few bucks to run through the place to some others, which I will refrain from disclosing.

What I would do is take a trip to the clerk of courts of your county to view what the court papers (LIS PENDS) have to say. There you will find what the lender has as what is owed... And that is generally what the starting bid will be... Sometimes it is greater, and sometimes it is lower than what the lender has in the complaint, but it gives you a starting point.

Originally Posted by 1stHome

We know its out of our range, but if we were to go to the auction and get it for much cheaper it would be quite an advantage.

True enough, maybe the listing has the amount owed plus a hefty "bonus" to cover the closing costs, commissions and a profit for the current homeowners... Check out the LIS PENDS.

Originally Posted by 1stHome

I know a family friend who went to an auction for a house that was listed for 100,000 and got the house for 20,000

Well, that is dangerous as well, if it is NOT THE FIRST that is filing the FC, you MIGHT buy the second or third position lien, and still have to pay off the senior liens to get the house. I have seen A LOT of newbie bidders win a junior position, and find out later that the $30K winning bid has a $90K senior note attached, and the house is currently worth $87K (due to depreciation and current condition of the property.) So now they paid $120K for something worth $87K.

Auctions are good, as long as you do your homework ahead of time.

Good luck, and Later!

Originally Posted by 1stHome

We want to take a look at the place, but since it is out of our price range, our realtor won't take us through....We know its out of our range, but if we were to go to the auction and get it for much cheaper it would be quite an advantage.

Did you explain this to your real estate agent? If so find a new agent. He is no longer working for, you and may feel that you are going to buy at auction and cut him out of the deal.

Hi,

The house's previous owner is then not able to pay the dues or no longer want to take that particular house back via releasing that house after paying the appropriate dues on its mortgage. In such cases, the specific house is then taken by a financier, or the lender, mortgager, and is thereby put up as resale. This is done to get one's money back via reselling that house through an house auction.

It is also crucial conduct a inspection of house to be auctioned . This is because once a particular house is sold and bought, the deal has been made and is irreversible.

Originally Posted by 1stHome

Can anyone explain a little about this?!

We are looking into a house that is going up for Auction in about 2 weeks, right now its for sale for 95,000, and they owe about 85,000 still on the house.

I know when we go for the auction you have to have 10% down in cash (which we can provide) and than 10 days later pay the remaining. Can the remaining be paid with a loan?! Is this a different kind of loan I take out instead of house one?! Just trying to get some information so we know where to go with this!

Do you have a professional on your side? These questions can easily be managed simply by someone who has some experience reading the terms of the auction. Auctions are done by many organizations (including lenders) and they all have rules. Get someone experienced on your side, make sure you understand the rules, check out the property carefully (prior to auction day) and bid knowledgeably.

If you are financing it be sure you can get into the house. I do not know about Wisconsin but in our area if you fail to come up with the money they can also hold you in contempt of court.