Quote:
Originally Posted by jkarolyi
The starting bid is usually the amount owed on the first mortgage, and has nothing to do with actual value. I've rarely seen a trustee list a property on a courthouse steps auction below the amount owed, but it does happen.
The trick is to find a place that has a low first mortgage (bought before the boom) but has a large second on it. You can buy it on the courthouse steps for the first mortgage amount.
And yes, be sure you are bidding on the first mortgage. This isn't as easy to determine as you might think.
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Yep, but day-of-auction (and sometimes last-minute) "drop bids" are becoming common place (at least here), so if you are looking at a list of properties the minimum bid listed may in fact be lower on day-of-auction. JK brings up a great point regarding which lien-holder is actually foreclosing. Make sure you do your homework, and verify that you are not bidding up a second mortgage foreclosure! Also a good idea to call the trustee in the morning to verify the home you are tracking is still on the list for that day. Several trustee co's even have quasi-realtime online database's that you can use to track upcoming/day-of/sold stats. Trustee-sale dates are routinely cancelled/re-scheduled/extended, so it's worth a quick check to save a potentially wasted drive to the courthouse/trustee office. Good luck.