Need Advice for Auction
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Need Advice for Auction (by GKARL [PA]) Jun 6, 2019 4:56 PM
       Need Advice for Auction (by NE [PA]) Jun 6, 2019 5:04 PM
       Need Advice for Auction (by NE [PA]) Jun 6, 2019 5:05 PM
       Need Advice for Auction (by Ken [NY]) Jun 6, 2019 5:12 PM
       Need Advice for Auction (by GKARL [PA]) Jun 6, 2019 5:14 PM
       Need Advice for Auction (by GKARL [PA]) Jun 6, 2019 5:21 PM
       Need Advice for Auction (by Ken [NY]) Jun 6, 2019 5:24 PM
       Need Advice for Auction (by Ken [NY]) Jun 6, 2019 5:27 PM
       Need Advice for Auction (by NE [PA]) Jun 6, 2019 5:33 PM
       Need Advice for Auction (by myob [GA]) Jun 6, 2019 5:37 PM
       Need Advice for Auction (by GKARL [PA]) Jun 6, 2019 5:38 PM
       Need Advice for Auction (by GKARL [PA]) Jun 6, 2019 5:48 PM
       Need Advice for Auction (by NE [PA]) Jun 6, 2019 5:54 PM
       Need Advice for Auction (by Ken [NY]) Jun 6, 2019 6:15 PM
       Need Advice for Auction (by Ken [NY]) Jun 6, 2019 10:36 PM
       Need Advice for Auction (by GKARL [PA]) Jun 6, 2019 10:41 PM
       Need Advice for Auction (by GKARL [PA]) Jun 7, 2019 11:37 AM
       Need Advice for Auction (by Ken [NY]) Jun 7, 2019 12:07 PM
       Need Advice for Auction (by GKARL [PA]) Jun 7, 2019 12:21 PM
       Need Advice for Auction (by NE [PA]) Jun 7, 2019 12:34 PM
       Need Advice for Auction (by GKARL [PA]) Jun 7, 2019 4:29 PM
       Need Advice for Auction (by Nicole [PA]) Jun 7, 2019 8:13 PM
       Need Advice for Auction (by GKARL [PA]) Jun 7, 2019 11:28 PM
       Need Advice for Auction (by myob [GA]) Jun 8, 2019 7:57 AM
       Need Advice for Auction (by Ray-N-Pa [PA]) Jun 9, 2019 5:20 PM

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Need Advice for Auction (by GKARL [PA]) Posted on: Jun 6, 2019 4:56 PM
Message:

This is for NE and Ken or anyone else who's experienced at this.

I'm going to an auction tomorrow to bid on a place I want. This was a short sell that I was pursuing a couple of years ago. We were in the midst of negotiating when I dropped out. They dragged their feet so much that an offer behind mine dropped out as well and not the auction is tomorrow. I have an advantage as I've been in the place a few times and know exactly what it needs. I can either flip it or hold it. I had a search run already and no surprises are out there.

What are the bidding strategies you would recommend? Would you let everyone else bid first and then raise? The mortgage outstanding is $ 150,000. Would the bank possibly bid that much on a property no where worth that? Would you suggest talking to the attorney in advance to let them know your interest or just show it by bidding?

--64.121.xxx.xxx




Need Advice for Auction (by NE [PA]) Posted on: Jun 6, 2019 5:04 PM
Message:

If other people are bidding, I wouldn't bother bidding unless I could get it so cheap that I could flip it doing nothing to it.

I can't stand competition on a house.

You may get lucky and no one shows up. Then bid $1 over asking. --174.201.xx.xxx




Need Advice for Auction (by NE [PA]) Posted on: Jun 6, 2019 5:05 PM
Message:

GKarl, what large city are you near? We should meet up for lunch. I'm sure Paulio-Pa would join. --174.201.xx.xxx




Need Advice for Auction (by Ken [NY]) Posted on: Jun 6, 2019 5:12 PM
Message:

NE can give specifics about your state,I know it is done a little differently in my state but basically just let it be known that you are there for the auction.The amount owed means nothing,i bought a house one time that was owed $270000 on the mortgage for $110.00 and have bought many more for $101.00,i know it makes no sense but it happens enough to keep me going back. when they open bidding I usually just let everyone else bid first,i rarely win an auction when someone else is there to bid,i have learned the more experience a bidder has the less they are willing to buy,in the counties I go to auctions at about 75% of the time I am the only bidder. the bank makes the opening bid and if I am interested I bid $1 more and let the bank keep bidding until they are done and I keep bidding just $1 more,i have seen a lot of bidders pay way more than they needed to.The bank may bid $100 and they may bid $200000,i have seen he banks bid more than the amount owed even though it may only be worth say $50000,i think it is all tax writeoffs somehow but it never makes sense.What bank? --72.231.xxx.xxx




Need Advice for Auction (by GKARL [PA]) Posted on: Jun 6, 2019 5:14 PM
Message:

The largest city to me is Allentown. Where are you and Paulio?

On bidding, what's your typical experience? A lot of people bidding? I prefer to not have competition either. It's highly likely there are going to be a few folks there however. I've been in the place and that gives me an advantage. --64.121.xxx.xxx




Need Advice for Auction (by GKARL [PA]) Posted on: Jun 6, 2019 5:21 PM
Message:

Ken, this is Countywide but an FHA mortgage. I recall that from the short sell negotiations as they were a PITA as HUD has some rather specific procedures for short sells--as I'm sure is the case for upset price at auction. I want the place though as I can either flip or hold. --64.121.xxx.xxx




Need Advice for Auction (by Ken [NY]) Posted on: Jun 6, 2019 5:24 PM
Message:

I go to auctions in 2 rural counties so most of the time I am the only bidder there but 1 of the counties has a bunch of very nice lakes so if a house is near the lakes then there will be about 6-8 people there for those.Be aware of down payment requirements,in my case I need 10% down right then so I carry cash but $1000-$2000 cash covers my usual down payment,in your case it may be different but be aware they wont take a check and probably wont give you time to go to the bank --72.231.xxx.xxx




Need Advice for Auction (by Ken [NY]) Posted on: Jun 6, 2019 5:27 PM
Message:

countrywide I haven't seen in my area for foreclosures but I think they were bought out by bank of America and bank of America is on my list of banks that I have gotten really good deals at there auctions. --72.231.xxx.xxx




Need Advice for Auction (by NE [PA]) Posted on: Jun 6, 2019 5:33 PM
Message:

About 2 hours north of you. Hickory run plaza on 476 may be a half way point.

I've seen auctions with all different about the people there. Sometimes eight or 10, sometimes too, sometimes just one. I'm sure there's options to happen all the time that nobody even goes to --174.201.xx.xxx




Need Advice for Auction (by myob [GA]) Posted on: Jun 6, 2019 5:37 PM
Message:

I've brought 17 at the courthouse steps. Sometimes I was the only bidder several times many bidders-- I didn't get all I bid on. This is for GA. Keep that in mind. The opening bid was sometimes pennies on the dollar-- we never knew what the start bid was going to be. So if it was advertised in the foreclosure paper as 150K being owed- occasionally 150k Was the opening bid- sometime 9K - no way of knowing so you have to be ready. It's cash-- so when and if you win the bid have certified money-- you could pay cash but that requires paperwork from the person selling and they don't like that-- nor do they like carrying cash. We have received over payments back about 7 days after the close of the action. When you bid you'll see your competition-- they may do 100's over or go 1000's over. Don't jump and get caught up in up by 1000"s get your 200 or 300 increases ready and stick to it.

When / if you get the property go and secure it immediately-- signage in the window ASAP. There are many crooked things going on during this process. Bid rigging by some so pay attention. Even after the bidding is over-- it's not over. I've seen where the cryers friends didn't get the property-- and the cryer comes back and says there was problems with the funds and sells it later to their friends -- original purchaser has gone home thinking it's there's. I never leave the bidding until the 4PM close of business for the sale. We recently had 3 put in prison for bid rigging-- prior to the sale. --99.103.xxx.xxx




Need Advice for Auction (by GKARL [PA]) Posted on: Jun 6, 2019 5:38 PM
Message:

Ken, I believe you're right on BOA being the bank now. They'll accept business checks for 10% here. You have to pay it immediately and take care of the balance in 21 days. --64.121.xxx.xxx




Need Advice for Auction (by GKARL [PA]) Posted on: Jun 6, 2019 5:48 PM
Message:

NE, that's near Jim Thorpe right? Yes, that's about an hour from me. We should put something together for the PA folks here. --64.121.xxx.xxx




Need Advice for Auction (by NE [PA]) Posted on: Jun 6, 2019 5:54 PM
Message:

OK, we will. I'm in the middle of an extensive remodel right now. I should be done around the beginning of July. We will hook up after that. --174.201.xx.xxx




Need Advice for Auction (by Ken [NY]) Posted on: Jun 6, 2019 6:15 PM
Message:

They will take business checks? that is nice,21 days there,here it is 30 days but I have stretched that out to 90 before,most of the time the banks attorney isn't even ready to close in 30.in my state I can read the terms of sale and that gives me the guidelines to follow,usually back taxes have to be paid by the bank to bring the taxes current but not always but they bring them current and there are no tax adjustments like a normal closing but you need to know to tell the referee to pay them so you may want to check on the taxes before the auction,i have actually bought a couple houses for $101 and the taxes were paid ahead so with no tax adjustments I made out real good on those.also in my state I pay all the filing fees etc for what would be typically both the buyer and seller side,the bank doesn't pay any of it so I have to pay all the filing fees,i get a search done and buy a title policy which is my expense. --72.231.xxx.xxx




Need Advice for Auction (by Ken [NY]) Posted on: Jun 6, 2019 10:36 PM
Message:

Let us know what happens --72.231.xxx.xxx




Need Advice for Auction (by GKARL [PA]) Posted on: Jun 6, 2019 10:41 PM
Message:

Will do Ken. I understand that folks heavily attend these in my area and the bidding is fierce at times, but deals can still be had. --209.122.xx.xxx




Need Advice for Auction (by GKARL [PA]) Posted on: Jun 7, 2019 11:37 AM
Message:

Got it. I bid $1 over the bank and no one else bid. It was crowded though. There were about 50 people there. Most folks were on lookers and only a few people were bidding. Got approached by someone afterwards to buy it. This is a two family. Paid 66k for it. It's worth at least 120k. I may just fix and flip. --172.58.xxx.xxx




Need Advice for Auction (by Ken [NY]) Posted on: Jun 7, 2019 12:07 PM
Message:

Good deal,I have sold the contract several times,dont even close just sell the contract and they close.Usually I just clean them out and sell them the way they are,i think sometimes I make out better than if I actually went to the effort of doing the whole rehab --72.231.xxx.xxx




Need Advice for Auction (by GKARL [PA]) Posted on: Jun 7, 2019 12:21 PM
Message:

That's a thought Ken. Probably could make a quick 10,000 to 20,000. --172.58.xxx.xxx




Need Advice for Auction (by NE [PA]) Posted on: Jun 7, 2019 12:34 PM
Message:

I'd stick it on the market for 99k for a month or 2 and see what happens --174.201.x.xxx




Need Advice for Auction (by GKARL [PA]) Posted on: Jun 7, 2019 4:29 PM
Message:

Well all options are on the table. This would also be a good hold. It has a one bedroom and a three bedroom apartment with two levels. One gas furnace though. If I keep, I'd get that separated. Other stuff is mostly clean up and cosmetic. I originally went after this place for a buy and hold. It was taking too long on the short sell and another opportunity came up. This place has been vacant since 2016 and it's pretty much in the same shape as it was when I first saw it 3 years ago. The bank could have come to terms on this three years ago. --172.58.xxx.xxx




Need Advice for Auction (by Nicole [PA]) Posted on: Jun 7, 2019 8:13 PM
Message:

I don't buy at auction so I've never paid enough attention to figure out the logistics.

Here, the lender usually gets it back for their foreclosure costs - several thousand when you see the transfer in the paper. I guess if someone else bids, they then jump to the payoff amount but not sure. --72.70.xxx.xx




Need Advice for Auction (by GKARL [PA]) Posted on: Jun 7, 2019 11:28 PM
Message:

It's an interesting process Nicole. I suggest you go and just watch. Most of the people were there just to see what was going on. Of the 50 folks there, less than 10 were active bidders. They had a list of 150 properties and at least 2/3rds of the sales were continued for a later date. Of the properties sold, the majority of the bids were won by the bank. They bid so high that no one attempted to bid on them. These were the properties they wanted to keep and sell on their own. Other properties had upset prices far lower and the bank would bid these lower prices plus $ 1.00. To prevail, you would have to raise the bid by $ 500. When it came to my place, the bank simply bid the upset price---they were uninterested in keeping the property and since they bid only the upset, all I had to do was raise by bid by $ 1. I had no competition as I suspect I was the only one who had done his homework on the property. I got a good deal and once things get settled, I plan on going back to observe more as well as to bid on more properties. Although I had no competition, there was some intense battling on a few properties.

Also, this is actually a two bedroom and bi-level three bedroom. (I said one bedroom earlier). I think I'm going to keep it. I'm thinking I can put a mortgage on it for around $ 100,000 and get my money back along with extra to fix the place. --209.122.xx.xxx




Need Advice for Auction (by myob [GA]) Posted on: Jun 8, 2019 7:57 AM
Message:

Actually the lenders have laws to follow when bidding. That's why the start bid can be so different from one loan to another-- like insurance they have already collected from the bad loan-- lenders also service loans and aren't the real owners of the note. Many factors.

Big lenders don't want to keep foreclosures-- they want to lend money. Every defaulted loan means less they can borrow from the FED to lend out. So a 200K default may penalize them 400K in borrowing ability. --99.103.xxx.xxx




Need Advice for Auction (by Ray-N-Pa [PA]) Posted on: Jun 9, 2019 5:20 PM
Message:

I haven't purchased too much at auction as there is just too much money out there bidding up these places. I blew off the free and clear auction all together this last time.

It sounds like you are going after a sheriff sale though --24.101.xxx.xx



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