patrick.net

P.T. Barnum was Right. There's one born every minute...

Maybe they all listened to Honest Lawrence Funny Yunny of the NAR....

Why not jump in and give it a whirl?

Not me. I might do it back east, for back taxes, for a piece of land I think is worthy. I know people who have bought acreage for less than $1000/acre. But here in the SF bay area? Half a mil for a run down POS? Not likely.

But I am curious.

PK,

Which county are we talking about?

>> Someone, usually a bank, has a property to unload and is looking for bidders.

Actually, I think the courthouse auction exists for an entirely different reason, namely to protect a defaulting homedebtor/homeowner from being screwed by a bank that wants to acquire the title to the property, and then possibly screwing the debtor by selling off the property for *more* than the loan balance and then pocket a profit.

I bet this was occurring at some point in time in history, and the rule of the courthouse public action was enacted to protect the debtor.

I went to three, and after the third one I had the basics but still had questions so i found the balls to walk up to the bank rep guy and say, "hi, do you mind answering some stupid questions?" The guy was cool, I told him I was not a REturd and just wanted to know if there was any way to buy a home at these auctions for less than the advertised default amount. He said "nope". I asked what he ment when he said "I will be bidding against you on this property." He said that meant the bank had a buy back amount they agreed to on a property that was going back for much less than market value.

Out of 125 properties that went to the Merced County courthouse steps on Oct 7, 2009 @3:00pm there were ZERO bids from the 10 people in attendance. 100 propeties were "held back by mutual agreement" and 25 were offered and fell silent. At the three events I have attended I have yet to see any property even get a single bid.

Thanks for the replies, that's pretty much what I thought. Still not sure I understand entirely what is happening, but clearly this is not a way a person buys a place to occupy. At least not now days, or at least I am guessing it's a fool's bid. Maybe I'll just do as you did Bap, walk up and start asking politely and see what they are willing to say.

I am referring to San Mateo Co.

E-man,

But cannot the 2nd lien holder still get a deficiency judgement against the debtor or a lien against the new owner/title?

And why would not the 2nd lien have any rights/interests at the auction, and/or collaborate with the 1st lien holder?

I am referring to San Mateo Co.
PK, I'm with E-man on this one. Because of outrageous price to rent ratios (which continue in desirable areas) and the crazy 1st and 2nd loans that were happening, the courthouse steps may be an opportune place to buy a home in the Bay Area. Let's use a real life example from San Mateo:
The home at 411 North Kingston hits the auction block Nov. 12 with an unpaid balance of $637,428.
It was bought for $749k in 2005 with a $599,200 first and $149,800 second (applause 100% financing). Not a screaming buy, but the bank could open lower... justme, the second is wiped out.

Someone I know who is quite wealthy and owns a great deal or RE in the bay area, told me years ago these are rigged as well. Basically a group of investors collude to not outbid each other on properties that meet their criteria. That's pretty much it and let's face it, I would probably do the same if I could. Illegal as all hell but good luck proving it.

He told me this probably 10 or 15 years ago, but my guess is nothing has changed. It's a club like usual.

E-man,

Okay, so let us say that the 2nd lien holder does not bid in the auction, for the various reasons you described.

But will not any buyers that pay off the 1st lien holder also assume the responsibilities of the 2nd lien, and then likely get a deficiency judgement against them?