bunch of people offering to buy my house now

[1967]

Today I received a letter of judgment that the house is foreclosed. In the same mailbox I have three hand written letters asking me if I could respond because they want to buy my house. Last week I received 5 letters asking the same thing.

Anyhow, the letter says the judgment total is for 135,000. And it says that the Sheriff sale (Wisconsin) can't happen any sooner than 6 months from the date of foreclosure.

Back taxes that are owed are 8,500

2nd mortgage total owed to a different bank is 45,000

When I add it all up it comes to 188,500. The question I have is this, how much will the sheriff sale amount be for? Is it just for the amount of 135,000 owed to the bank that's foreclosing, plus the buyer needs to pay back taxes right?

What does the bank that holds the 2nd mort do in this situation? Do they have any say in what the price will be at the sheriff sale?

My house is a small ranch and my neighbors house is a big two story (double sq footage) that was foreclosed a 1 1/2 ago. The house got no offers and I heard the bank wants 175,000 but can't get it.

If my house goes for sale for 188,500 I can't imagine it would ever sell.

Is my math right, I guess I'm just confused. Strange though, I keep getting letters from people asking to buy it.

Thanks for the help
Mike

[Mensa1]

The offers are based on a short sale, paying the lender less than what is owed. In that sale price the taxes would be paid too, so the bank would be getting less. 2nd mtg would likely get 1-2-3K max. Seller gets 0.

Of course there is always that pile of mulch in the backyard, the swingset, the old tires on the side of the house, etc., etc... all personal property. A common practice is for the buyer to have a personal property purchase agreement with the property owner for items x, y and z... they usually equal 2-3K... Get it...? Whether those items are there are they aren't, they are in the pers prop agreement and upon closing the buyer executes a check for those items. Done.

Now the lender wouldn't like that arrangement, but it happens everyday. Just be discreet and document what you are doing outside of the real property purchase and sale agreement, for which the seller receives 0.

[DeadManCrawling]

You want to be careful responding to these offers to buy your house.

I received a ton of them. I am guessing that a fair number of those you received, like what we got, say things like:

"We have loved your house since we first saw it three years ago . . . Our family of five good Christians would be grateful if you would speak to us . . . My mother and I . . . We were driving through your neighborhood . . ." and so on.

There are companies who send what appear to be handwritten notes to EVERYONE in foreclosure. They are hoping to make an arrangement that benefits THEM. Not you.

Some tactics include: You deeding the property to them for a small fee, then they lease it back to you for X number of dollars. Or-They, for a fee, take over the deed and rent it out to save your credit. Or-They, for no fee, do something else.

It all amounts to the same.

They find a way to make money, probably outside the law.

YOU are more screwed than ever.

Avoid these people, and save yourself some stress and money.

[dscurlock]

You want to be careful responding to these offers to buy your house.

I received a ton of them. I am guessing that a fair number of those you received, like what we got, say things like:

"We have loved your house since we first saw it three years ago . . . Our family of five good Christians would be grateful if you would speak to us . . . My mother and I . . . We were driving through your neighborhood . . ." and so on.

There are companies who send what appear to be handwritten notes to EVERYONE in foreclosure. They are hoping to make an arrangement that benefits THEM. Not you.

Some tactics include: You deeding the property to them for a small fee, then they lease it back to you for X number of dollars. Or-They, for a fee, take over the deed and rent it out to save your credit. Or-They, for no fee, do something else.

It all amounts to the same.

They find a way to make money, probably outside the law.

YOU are more screwed than ever.

Avoid these people, and save yourself some stress and money.

1: as the op stated, the home is forclosed.

I would think since it is forclosed, then he can not
do anything...my short sale agent told me once the
home is forclosed, then it would be less likely to
accept any type of arrangements...as it is in
their hands, they will decide on how to sell
the property...I put up my home forsale just
as i was getting those forclosure notices..
and within a week, the agent found a buyer,
the 1st and 2nd agreed on a settlement...
done deal...

as for selling a home after it is
forclosed, I do not know, but if it is possible, then
have a short sale agent look into it, and turn
over the letters to him, so they can take the
offers to the bank...

but at this stage, what would be the point?

I am a little confused...you said something about
Sheriff Sale...was your home seized by the Sheriff's
dept? Why would you think it would be sold at
a sheriff's auction? I would think the bank will
decide on what to do with the home. I do not
see where the sheriff would come into this...

and regardless on what they do with the home
from here on out, does that really matter what
they get for the home? Sounds like it is out
of your hands, regardless on what the bank does.

[1967]

I should have explained it better. I'm petitioning for bankruptcy first week of April. The home is officially foreclosed and in Wisconsin it goes to the sheriffs sale.

I'm just wondering who determines the price. Does the second mort bank have any say in the matter? Or does the primary lender for the mortgage set the price for the sheriff sale and the 2nd mort bank gets left with what ever is left over?

Thanks
Mike

[Mensa1]

Not an expert on WI foreclosure by any means, but a quick look shows that the property cannot sell for less than the judgment amount. The judgment amt would be determined by the lender bringing the action, so if it is the 1st mtg then it would bid for at least that amount. If it bids for less it cannot be confirmed, so they always bid for that amount or more.

If the bid is the amount of the 1st mtg, then the 2nd gets nothing. Of course the 2nd could bid a higher amount, end up with the property and then the 1st gets paid in full. In that case the 2nd mtg would then own the REO.

The peculiar thing about Wis is that you have up to a 12 month redemption period. Vacant props have a 2 month period to redeem. This means that even after the sale it is far from over... This is why you are getting all these letters because even after the sale, someone can cut a deal with these lenders in a short payoff and many lenders will do so to have it done. What I attempted to illistrate in my earlier post in this thread is that investors who are sending you those letters are attempting to have you quit claim your interest in the property, then they can negotiate with the lenders for a short payoff deal... therein ending up with the property for less than what is owed, then they can sell it for FMV, whatever that is. Just how it works. If the party you QC deed the property to is unsucessful at obtaining a short payoff on the loans owed, they aren't out anything. The sale just confirms and then the high bidder, either the 1st or 2nd mtg ends up with the property... unless the high bidder at the sale was a 3rd party investor; (rare these days due to no equity).

[1967]

Thanks for the great explanation. I just want to stay in the house as long as i can. The letter said a minimum of six months before going to the sheriff sale. That was just days ago.

Mike

[Mensa1]

Thanks for the great explanation. I just want to stay in the house as long as i can. The letter said a minimum of six months before going to the sheriff sale. That was just days ago.

Mike

From what I read about WI foreclosure law it states that the redemption period, the time frame in which you could still payoff the mtg(s) owed and reclaim your house, is between 6 to 12 months. I think WI redemption is the longest of all states, maybe one other state down south has a 12 mo redemption too. So until the redemption period runs out, you have full occupancy rights.