There is a property that I have been following for a few months. I just showed up in the latest Sheriffs Sale report as going to auction in about a month. This would be my first time pursuing a property at auction and am just wondering what the basic process is.
One of the main questions I have is on the listing it says the “Judgement Amount” What exactly is this number? Is this where the bidding will start or is this how much is owed on the loan from the lender?
Hello,
Where are you looking at the sheriff sale information? Are you on the courthouse webpage looking at the dockets or from a legal newspaper/website? If you are looking on the courhouse sight the “judgement amount” means what the home owner is in default for. What you want to look for is the appraisal amount from the sheriff. Usually you can find this in either of the two places mentioned above. In my state (ohio) the bidding starts at 2/3 the appraisal or about 67%. Lately the banks have been letting properties go without bidding them up at the auction.
I would recommend you do a little research if you are serious about the property. Go to the house and try to look inside, if someone is there, it might be tricky but you could tell the ho that you are interested in the property and maybe they will let you in to look at it. This could lead to a short sale if you have the time/experience to pull it off. If the home is vacant look around especiall in the basement for water. Once you buy it you get it as is so try to get as much info as possible to make sure you are buying right.
You will also need 10% down at the auction and the rest 30 days after you get the confirmation from the judge. ( ohio )
Good Luck
Hi G whiz,
Thanks for the information. I am looking at this Judgement Amount on a document of upcoming auctions that I downloaded from the Sheriff’s Sale site on the county webpage. This property is located in Iowa so I will have to dig a little deeper and try to find out where they start the bidding.
The house has been vacant for several months but it is in great condition. It just needs some minor TLC but that appears to be in pretty good shape. I have not looked in the basement but will try to take a peak today when I go by there.
Would I be able to line up money from the bank to purchase a property at auction and would the %10 go towards the loan? This would be my first investment property so a ton of capital is not there. Need to start somewhere, somehow though…
Thanks!
The following is from the Frequently Asked Questions on the Sheriff’s Sale website…
http://www.linncounty.org/content.asp?Page_Id=752&Dept_Id=29
Q: How does the bidding start?
A: The judgment holder almost always starts the bidding. Generally, the judgment holder bids in writing a plaintiff’s bid on judgment. This bid is usually given to the Sheriff’s Office before the day of the sale. The judgment holder’s bid, if given to the Sheriff prior to the sale, is considered a sealed bid and will not be disclosed until the sale is called.
Im not sure exactly what this means. Am I not going to be able to know what the bidding starts at until the auction starts?
Looks like you don’t know the opening bid until the auction and you have to pay the whole amount the day of the sale. Yikes! this sux :flush
It sure does! Countrywide is the lender - does anyone think I could still get a good discount on this assuming Countrywide buy back the property. Does anyone have any experience buying Countrywide REO’s?
g whiz - why do you say that you have to pay the whole amount the day of the sale? I couldn’t see it in exit311’s note… Am I missing something?
Thank you. And have a nice evening!
Sher riff Sales procedures are different in different states and even in different areas of the same state. You really need to research the laws and rules in your area before bidding. Some stated have a redemption period, the time in which the Previous Owner can payoff the debt and reclaim the property, of up to 2 years. Call or visit your local Sherrif’s Office and try to get a copy of the rules and ask them about the bidding process and redemption period.
Here in South NJ the bidding starts at $1, but the bank will almost always bid against any other bidders up to the “Upset Price” (how much money they are owed) and then drop out if other bidders bid higher. The winning bidder is required to provide 20% of the winning bid in cash or certified check IMMEDIATELY. The balance is due in 10 days, corresponding with the PO’s redemption period. And good luck getting your money back if the property is redeemed. The Sherriff’s Office kept my down payment for over 60 days when the property I won the bid on was redeemed.
Go to a few sales before the house you are interested in is up for auction. You’ll probably learn a little something and be more comfortable about the process if and when you do actually participate.
jmd_forest
According to exits link FAQ #1 states:
Q: Do I have to pay the full amount of my bid the day I purchase?
A: Yes.
g whiz - so you had to go to the link… Thank you for clarifying. I thought I was missing something from the post. Have a nice weekend!
So has anyone dealt with Countrywide REO’s? Im thinking about just taking the chance that the lender will buy the property. Assuming I can still get a good deal this may be the best option for me.
I have purchased numerous REO properties from Countrywide. However, you will have to wait until it is placed with a Realtor and put on the MLS.
It will generally be listed for too much but if you follow the listing and constantly make offers you stand a good chance of purchasing it at a price that will be substantially less than the judgment amount.
My area, South East Florida, has been severely impacted with the mortgage meltdown. Prices have fallen over 50% in some areas yet the banks will still not let properties go for less than the judgment amount at the court house steps.
Has anyone been encountering banks that will take a substantial discount from the judgment amount at the court house?