This was not a default being cured … rather it was the 2nd DOT holder (w his lawyer) who tendered payment right there at the steps … and at the proverbial ‘last moment.’ The 2nd had apparently pre-arranged to move into 1st position, by buying out the 1st DOT. Apparently (so explained by the 2nd’s lawyer) the 2nd and 1st had formally agreed on terms and signed a contract, but payment had not been made. The 1st was, therefore, smartly marching forward with the scheduled trustee sale, and the 2nd had no time to do a funds wire or otherwise finalize (tender payment) their buyout of the 1st. So the private party owner of the 2nd made an appearance at the steps to convey payment through the crier. It was accepted by the crier (so authorized by trustee), and the trustee sale on the 1st was cancelled right then and there. If the sale were to have gone forward, the 2nd would have had to ‘bid’ like any other investor or risk getting wiped out. The 2nd was $300K and the 1st DOT going to sale was $200K. So the 2nd had much to lose. There was/is also a 3rd DOT that will likely get wiped out when this comes back to the steps (as the property owner is way underwater and not paying any of his loans). Since there was ample equity *if* the 1st went to sale, there was a group of disappointed investors assembled. And one woman refused to accept that this “2nd moving to 1st” transaction was legit … hence the shouting/patronizing dialogue between the 2nd’s lawyer and the disbelieving investor.
I had never seen such last minute maneuvering by a 2nd position DOT holder… but I totally understand why they jumped in to save their own bacon.
Anyone who expects to buy a property close to opening bid is too naive to be an investor.
Auction.com allows on-line bidding at same time as physical auction.
Since buyers pays a 5% fee, the bank saves that over listing with broker.
Many of the properties for sale have already been on market and didn’t sell due to price/condition. My office had one listed originally at $199K. Bank (BoA) turned down $175K cash; sold at auction for $150K.
Larry -
You seem to be confusing their REO sales for banks and Trustee Sales for various foreclosure Trustees.
Their Trustee sales are conducted, according to code - meaning just like any other "foreclosure auction. 100% cash payable on the spot. The only screwing around they do with these is - they never tell you the real lender’s bid in advance. They simply make up an opening bid and it’s only when their not so subtle “plants” stop bidding that you know the real opening bid has been reached. Most of the time it never gets to that figure.
The online bidding/physical auction is where they are acting as an agent for the owner (previous lender) and trying to simply get an acceptable offer. Much of the time the person who makes the high bid does not get the property because the owner won’t accept it.
As for your B of A example: I’ve seen many cases where banks have turned down offers - only to then let the foreclosure take place with a much lower opening bid. This still happens, but not as often as in the past couple years.
Yes, the post above (Larry) is describing an REO auction that is held by Auction.com in a ballroom. These are post-foreclosure properties sitting in a bank’s invesntory. In my area they are usually the absolutely worst properties in the County that the bank has been trying to sell REO for months. Then they try to bring them out to an auction (and sometimes they are simultaneously still listed on the MLS). The majority of the properties are really bad location, really poor condition, or priced ridiculously high. So, in the end a large number of the properties are auctioned with ‘cash only’ bids. Don’t know why they waste their time since those REO auctions are trying to target an audience that can get financing, not investors with cash.
And another interesting thing… the REO properties that are up for the online auction disappear off the face of the earth after the online auction is ‘closed’. As an example, I was actually interested in one property going to online bidding. It had a low opening bid and I had been inside the property when they were trying to sell it as an REO for months. So I thought I would give it a try. I waited until about 2 hours before the ending of the online auction and made my bid online. It was immediately ‘bumped’ up by some phantom bidder. Then I literally WASTED my time for 2 hours bidding up to my limit and the website just arbitrarily bid it up automatically. As far as I could tell there was only one other true human bidder who stopped bidding about the same time that I did. Thing kept being auto-bid up even after we both stopped. As soon as the time was up, the property fell off the face of the earth and there was absolutely no way to see the outcome of the auction.
They do not provide any information on the properties after their live ballroom auctions, live trustee sale auctions or online auctions. Absolutely crazy.
BTW, saw the property come back out as REO in MLS about a month later, they are still trying to sell that piece of junk.
Just to clarify… Auction.com does not provide any info on properties after an auction. You cannot find the property anywhere on their website. When I tried to call to follow up on a property once I was told “You will have to wait for the Trustee Deed to be recorded, we do not provide post-sale information”.
For trustee sales, you can find the post-sale info on Foreclosure Radar (if they can get it).
Don’t waste your time with Auction.com? They are selling properties from 3rd parites that have to approve any winning bids and most of the time they reject.? Insiders bid up the price and rarely do properties meet the reserve amount during the Auction time.? If they do, chances are you over paid!? No deals on the site.? You’re better off going to the Casino and gambling your money away.
I would like to get the word out - buyers beware. I am purchasing an auction.com property and found a most unpleasant surprise at the closing table. I knew I would not be paid a commission since I am a second class citizen i.e. Realtor. And even if I had been paid a commission, it would only be 1% which is ABSURD!
But I did not know that I was going to be charged all kinds of additional fees that should be paid by the SELLER. There was some hidden language buried on page 53 of the contract that changed the terms of the contract stating that I would pay the sellers attorney fees, back HOA fees, taxes, etc. And this was all hidden on page 5 in an addendum titled “Occupied Property Addendum.” This is so shady it just stinks! How can they change the terms of the contract on such an addendum? My attorney has done thousands of closings and he has never seen such a shady practice. They must be exposed!! Can you help? My attorney was Robert Going - I have copied him on this. I have also sent this to ecare at Remax.
AGREE! CHASE BANK IS USING AUCTION.COM TO SELL THEIR PROPERTIES AND AUCTION.COM DOES NOT HONOR THEIR CONTRACTS WITH SELLING AGENTS. ANY REALTOR WHO WORKS WITH THIS COMPANY WILL BE DUPED. ANY ADVERTISING THAT SAYS THEY WILL PAY COMMISSION—EVEN THE 1%—IS NOT HONORED. THEY PAY THE MANAGING COMPANY YOUR COMMISSION. ALSO THE CONTRACT SPECIFIES THAT THE BUYER CAN SELECT TITLE COMPANY. HOWEVER, UPON SELECTING THE TITLE COMPANY, THE BUYER IS PENALIZED BY HAVING TO PAY SELLER COSTS. THEY ONLY WAY TO AVOID THAT IS TO ALLOW AUCTION.COM AND BLACK KNIGHT FINANCIAL SERVICES TO USE THEIR OWN COMPANY.