Attending the foreclosure / trustee / auction sale?

[No Gravy]

My trustee sale is scheduled in a few weeks, on the steps of the civic center. It so happens...I live very close to there.

I'm wondering if anyone else has ever gone to their house's foreclosure sale, and if so, what was your experience with it? I'm not sure I'm going to go. Part of me wants to, to know first hand what happens. The other part of me feels like it would just be too creepy.

I can't imagine there being any bids on the house, since I owe $283k, and really nice houses in this area have been selling for $135k. So likely the lender with "bid", and that will be that.

[hnhlvr]

I'm thinking of going too! I just need sunglasses and a hat so nobody recognizes me. lol

If you go, be sure to post what happens.

[justbroke]

I'm thinking of going too! I just need sunglasses and a hat so nobody recognizes me. lol

If you go, be sure to post what happens.

Yeah, and you should make bids to make it go up, so the Bank pays more.

[Tbornetun]

The bank doesn't pay anything. When they bid on your house, no money changes hands, it is their property.

[TEW]

And it's not the trustee is the sheriff. The vultures that live next door to me thought they would be smart and go bid 5K on the house next to them at the first sheriff’s sale. They were asked to leave only the bank bids on the first sale.

[justbroke]

The bank doesn't pay anything. When they bid on your house, no money changes hands, it is their property.

Well, first, it's "funny money", so they have "up to" the value of the lien (plus fees enumerated in the mortgage/note) as play money. After that, it's all real money. For a single lien property, this is simple.

As for is this always true, well, it depends. If it's a junior lienholder foreclosing, this isn't true. A secondary, tertiary, quartinery (and beyond) lienholder, must pay the other liens in their entirety. Their only play money is the value of their lien. If a second mortgage holder forecloses on a property encumbered by a $300K first mortgage, and then a $100K second mortgage (the one they hold), they must bring at least $300K CASH to the table to purchase the property. If there was a third or other liens, they can then stave them off with another $100K of "funny money". The third and other lienholders would need at least $400K CASH in order to outbid the secondary lienholder... in this scenario.

Usually, however, a junior lienholder won't foreclose when the value of the property is less than the sum of the senior (superior) liens plus the junior lien.

However, there could be a case where you are oversecured and default on a junior lien. That junior lien may foreclose and recoup their costs by selling the property afterwards.

This doesn't happen often, especially in this marketplace, but can and does happen. The reason you don't see it too much these days, is because most property is undersecured by the liens which encumber the property.

[No Gravy]

And it's not the trustee is the sheriff. The vultures that live next door to me thought they would be smart and go bid 5K on the house next to them at the first sheriff’s sale. They were asked to leave only the bank bids on the first sale.

Ummm...on the paperwork I got it said "Trustee Sale." So that's what I'm calling it.

And at least here they post a notice in the paper of the sale, so it wouldn't make sense to do that then tell potential bidders to leave. Maybe your neighbors were being obnoxious?

[No Gravy]

I'm thinking of going too! I just need sunglasses and a hat so nobody recognizes me. lol

If you go, be sure to post what happens.

I might ask a friend to go, just to watch what happens. Not sure I could handle watching other people bidding on my house.

[BROKENN]

I might ask a friend to go, just to watch what happens. Not sure I could handle watching other people bidding on my house.

That's a good solution. I couldn't watch either but you would like to know!

[HHM]

It's not terribly exciting.

You would probably know if there is going to be a bidder, you might have seen someone slowing down as they drive by your house, possibly get out and take a few pictures

[No Gravy]

It's not terribly exciting.

You would probably know if there is going to be a bidder, you might have seen someone slowing down as they drive by your house, possibly get out and take a few pictures

Ohhhh, yeah. Had several drive-bys. One I all but chased off, since she acted like she was casing the place. She said she was working for a realtor "getting comps in the area", but only seemed interested in my house. Pretty odd, considering every third house in this neighborhood is in varying states of FC.

If someone DOES bid on my house, sight unseen (as far as the inside goes), I'm gonna laugh my butt off. See...it was built in 1917, and though the outside looks good, the inside....needs serious work.