Re: foreclosure auction help

Posted by Julio Martinez-Clark on December 30, 2007 at 08:48:01:

In Reply to: REMOVEDRe: foreclosure auction help posted by erv on December 29, 2007 at 16:40:25:

Hi Erv,

Thank you for taking the time to clarify some of my comments. I should have
been more explicit about the context in where my comments were made.

1. Minimum bids: My several years of experience in real estate foreclosure
were in Florida which is a judicial state. As you know, foreclosure laws and
procedures vary from state to state. In Florida all county court houses have a
clerk of courts circuit civil division that administers the mortgage foreclosure
auction and based in my experience, the bidding process starts with the loan
balance amount (plus legal fees, advances, penalties, etc) of the foreclosing
lender. I assume this is the process in several parts of the country based on
everything I've read and what I have been told by people familiar with
foreclosures.

2. "it's very likely that nobody at the auction will bid on the
home": I made this comment in the context of today's residential real estate
market. It's been my observation in Florida and through reading national news
that because of the declining home prices and over leveraged homeowners,
most homes sold at foreclosure auctions in several parts of the country are
collaterals of outstanding debt that is more than what the homes are worth.
This causes bidders/buyers to frown upon the properties since the minimum
bid being the outstanding debt, it doesn't make financial sense for many of
them to purchase an asset for more than what they are worth. So, my comment
was based on what I inferred from Alison's original post on December 26,
2007 at 21:38:01 in which everything seems to indicate to me that her
mortgage balance(s) are higher than what her home is worth.

I hope this provides some needed clarification.

Julio Martinez-Clark

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