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How do you know a bank is being honest when you try to buy a foreclosure property and they say they have another bidder so go higher?
Wiki User
∙ 14y ago
If it is a regular sale negotiation, the potential buyers will not know for sure what other potential buyers have offered for the property. Offers can be kept confidential between the buyer and lender, unless either party wants to disclose to another person the amount of the offer.
Thus, there is no way to know for sure if the bank has another, higher offer for the same property in foreclosure. Either call the bluff by walking away, or submit a better offer if it is still within your price range.
In a foreclosure public auction, where properties are bid on for the highest price, the bids are usually taken out loud or read aloud by the county sheriff, and the highest bidder wins -- there are no other negotiations.
Wiki User
∙ 14y ago
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Can you get another mortgage after a foreclosure?
yes...........but you will pay a much higher interest rate and your homeowners insurance will also be much higher Probably not.
What is a reo property?
REO (Real Estate Owned) is a class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction. A bank will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the bank will legally repossess the property. This is usually the case as the amount owed on the home is probably higher than the value of this foreclosure property. As soon as the bank repossess the property, it is listed on their books as REO, and is categorized as an asset (non-performing).
What are the steps for a forclosure?
A foreclosure occurs when a property owner cannot make principal and/or interest payments on his/her loan, typically leading to the property being seized and sold. Stages of Foreclosure The foreclosure process is not very difficult to understand. There are several stages during which the homeowner has an opportunity to bring the loan current and avoid foreclosure. After about three to six months of missed payments, the lender orders a trustee to record a Notice of Default (NOD). At the County Recorder's Office. This puts the borrower on notice that he or she is facing foreclosure and starts a reinstatement period that typically runs until five days before the home is auctioned off. If the default isn't corrected (the loan must be brought current) within three months, a foreclosure sale date is established. The homeowner will receive a Notice of Sale, and this notice will also be posted on the property. In addition, the Notice of Sale is recorded at the County Recorder's Office in the county where the property is located. Finally, this Notice of Sale is also published in newspapers local to the county in question over a three-week period. The foreclosure Trustee Sale typically occurs on the steps of the county courthouse in which the property is located. The time and location of this sale are designated in the Notice of Sale. At the Trustee Sale, the property is auctioned in public to the highest bidder, who must pay the high bid price in cash, typically with a deposit up front and the remainder within 24 hours. The winner of the auction will then receive the trustee's deed to the property. Foreclosure Auction At auction, an opening bid on the property is set by the foreclosing lender. This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the Trustee Sale. If there are no bids higher than the opening bid, the property will be purchased by the attorney conducting the sale, for the lender. If this occurs, and the opening bid is not met, the property is deemed a REO or Real Estate Owned. This typically occurs because many of the properties up for sale at foreclosure auctions are worth less than the total amount owed to the bank or lender. When you purchase property at a foreclosure sale, all junior liens other than property taxes are wiped out. Priority of liens is determined by the date of recording. When you purchase a REO aka. Bank REO, you will typically receive the property with a clean title.
How many points will a foreclosure reduce your credit score?
Depends on credit score prior to foreclosure. If your score was higher before foreclosure, it might drop 200 points or so. If it was lower before foreclosure, it might drop closer to 100 points. It varies significantly.
Can a timeshare foreclosure hurt your credit?
1. The foreclosure will be visible on your credit history. Lenders will take it into consideration that you didn't pay a debt before loaning you additional money. You will either not get the new loan or will pay a much higher interest rate. 2. The timeshare lender will report the foreclosure to the IRS. They will show the amount of money that was still owed at the time of the foreclosure as well as the value of the property at the time it was sold. Let's say you paid $10,000 for the timeshare, had a remaining balance of $8000 and the timeshare is now wroth $4000. For tax purposes you have a $4000 non-deductible loss (timeshares are personal use property) and a $4000 cancellation of debt income. If you are not insolvent or bankrupt, the $4000 will be added to your income in the year of the foreclosure as "other income." (The loan is considered separately from the property so the $4000 loss doesn't reduce the COD income at all.) Yes, it will leave mark on your credit history making it harder for you to avail of future loans. In other words, lenders will have a lower trust on you.
Can you get another mortgage after a foreclosure?
yes...........but you will pay a much higher interest rate and your homeowners insurance will also be much higher Probably not.
Can seller on eBay negotiate a higher price if bidder did not meet reserve?
Not sure what you mean the reserve is higher, bidder did not meet it and it is your minimum so there is nothing to negotiate.
What is a reo property?
REO (Real Estate Owned) is a class of property owned by a lender, typically a bank, after an unsuccessful sale at a foreclosure auction. A bank will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the bank will legally repossess the property. This is usually the case as the amount owed on the home is probably higher than the value of this foreclosure property. As soon as the bank repossess the property, it is listed on their books as REO, and is categorized as an asset (non-performing).
How does a bidder at a live auction indicate to an auctioneer that the bidder will not bid higher?
Usually the auctioneer points at you or says something that stands out about you and gives you a higher price, and usually the bidder shakes his head or shakes his finger to indicate that he won't be going higher
What are the steps for a forclosure?
A foreclosure occurs when a property owner cannot make principal and/or interest payments on his/her loan, typically leading to the property being seized and sold. Stages of Foreclosure The foreclosure process is not very difficult to understand. There are several stages during which the homeowner has an opportunity to bring the loan current and avoid foreclosure. After about three to six months of missed payments, the lender orders a trustee to record a Notice of Default (NOD). At the County Recorder's Office. This puts the borrower on notice that he or she is facing foreclosure and starts a reinstatement period that typically runs until five days before the home is auctioned off. If the default isn't corrected (the loan must be brought current) within three months, a foreclosure sale date is established. The homeowner will receive a Notice of Sale, and this notice will also be posted on the property. In addition, the Notice of Sale is recorded at the County Recorder's Office in the county where the property is located. Finally, this Notice of Sale is also published in newspapers local to the county in question over a three-week period. The foreclosure Trustee Sale typically occurs on the steps of the county courthouse in which the property is located. The time and location of this sale are designated in the Notice of Sale. At the Trustee Sale, the property is auctioned in public to the highest bidder, who must pay the high bid price in cash, typically with a deposit up front and the remainder within 24 hours. The winner of the auction will then receive the trustee's deed to the property. Foreclosure Auction At auction, an opening bid on the property is set by the foreclosing lender. This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the Trustee Sale. If there are no bids higher than the opening bid, the property will be purchased by the attorney conducting the sale, for the lender. If this occurs, and the opening bid is not met, the property is deemed a REO or Real Estate Owned. This typically occurs because many of the properties up for sale at foreclosure auctions are worth less than the total amount owed to the bank or lender. When you purchase property at a foreclosure sale, all junior liens other than property taxes are wiped out. Priority of liens is determined by the date of recording. When you purchase a REO aka. Bank REO, you will typically receive the property with a clean title.
How many points will a foreclosure reduce your credit score?
Depends on credit score prior to foreclosure. If your score was higher before foreclosure, it might drop 200 points or so. If it was lower before foreclosure, it might drop closer to 100 points. It varies significantly.
Is the home foreclosure rate up or down for the past year in Omaha, NE?
Home foreclosure rates are higher than that of the previous year in Omaha, NE.
The Basics Of Foreclosure Laws?
Foreclosure is a grim factor that many people are facing today all over the nation. Banks or lenders will often try to take advantage of a situation they feel they can, so it is important for consumers to know their rights. Each state's foreclosure laws are different; what may be legal in one state will be illegal in another. For this reason, consumers must learn their own individual state's foreclosure laws to understand the proceeding. There are several factors that are involved in foreclosure in each state that must be known. Judicial and non-judicial foreclosure are two factors that are variable. Nearly every state includes judicial foreclosure, which allows the lender to file a lawsuit or sell the property, providing that the mortgage document or Deed of Trust did not include a power of sale clause. Non-judicial foreclosure is related to the power of sale clause. This wording is included in some documents, allowing the sale of the property to the highest bidder, paid in cash. Before the sale is allowed to take place, each state requires that formal notice be printed in the relevant newspaper for several weeks. If a power of sale clause is present, there is usually a month allowance of time after the last publication was printed in the newspaper before the sale is permitted to take place. In contracts where a power of sale clause is not included, the extra time period is not always required. Foreclosure proceedings typically last between 30-180 days, depending on the individual states. States that have a higher population usually have a longer time allowance than less populated states, but not in every case. Another factor included in every state is the right of redemption. This is the right held by the consumer facing foreclosure to redeem their property from a tax sale within a specified amount of time. Some states do not have a right of redemption, while others do. This time frame, if present, varies and is usually about 12 months or less. Some states also have laws allowing deficiency judgments. These are detrimental to the consumer, demanding a balance due if the foreclosure sale did not meet the amount that is owed. Consumers who are facing a deficiency judgment charge must hire an attorney to fight it. Every consumer facing foreclosure has specific rights. To learn about rights and proceedings, foreclosurelaw.org is an excellent resource for information.
How do you put bidding in a sentence?
In my excitement, I forgot I was bidding too high. Bidding for an antique table, I lost to the higher bidder.
Can a timeshare foreclosure hurt your credit?
1. The foreclosure will be visible on your credit history. Lenders will take it into consideration that you didn't pay a debt before loaning you additional money. You will either not get the new loan or will pay a much higher interest rate. 2. The timeshare lender will report the foreclosure to the IRS. They will show the amount of money that was still owed at the time of the foreclosure as well as the value of the property at the time it was sold. Let's say you paid $10,000 for the timeshare, had a remaining balance of $8000 and the timeshare is now wroth $4000. For tax purposes you have a $4000 non-deductible loss (timeshares are personal use property) and a $4000 cancellation of debt income. If you are not insolvent or bankrupt, the $4000 will be added to your income in the year of the foreclosure as "other income." (The loan is considered separately from the property so the $4000 loss doesn't reduce the COD income at all.) Yes, it will leave mark on your credit history making it harder for you to avail of future loans. In other words, lenders will have a lower trust on you.
Can a person let their house go into foreclosure even if they can make payments because the interest rate readjusted at a higher level and would put a strain on finances?
Obviously if you do not make payments the bank will eventually foreclose on the property. What you may want to do is give the bank a "deed in lieu of foreclosure"So the bank saves it's time and effort, and help salvage your credit rating. if you let it drag on it can only get worse.
Can a lender continue foreclosure action if you pay the arrearages and the payments are current?
If foreclosure has been started, it doesn't really matter if you pay the loan up to current. Your original contract probably stated that once you are in default the entire amount can be called due, and the property can be sold for the amount owed (foreclosure). As soon as you are in default, the bank can foreclose. If you pay the past due amount, they MAY decide to let the loan continue. It's the bank's decision. In general, once you have been in default you are considered to be a higher risk. The bank may let you re-finance the loan, but they also may want to charge a higher interest rate because you are no longer a low risk borrower.
