In following the foreclosure process on a home that I


#1

am a lienholder on…I was told by Wacovia that the pay off demand was $327,000.00.
At auction, the bank set the opening bid at $130,000.00. I was very surprised that it was so low. It was not bid on and here in lies my question. If I want to make and offer on this home BEFORE it goes on market, does it make sense to write a contract for $130,000.00? Whom do I now submit this contract to?
Are all other lienholders dismissed? In a sale like this, should I expect to get clear title and the deed in my name?


#2

Cautionary tale - always a good idea if you are a private jr lien holder to show up at the auction with the amount you are willing to pay.
Yes, it does make sense to make an offer to the bank, but you shouldn’t count on them honoring that opening bid - though they may. The cleaner you make the offer (the fewer conditions), the better. As for whom to submit to you’ll need to find the asset manager at the bank who is handling the property. Try calling the trustee and if you can get through to the attorney who handled the file they may be able to direct you to the right person (this used to be easier to do before volumes increased to current levels). You can also try the laneguide.com for a direectory of bank contacts.
Yes, all junior lienholders had their security interest in the property wiped out at the sale.? And yes, the bank should sell it to you free and clear (though you could offer to pay past due taxes which may improve your chance at the 130k number as you would have owed those had you bought at the trustee sale anyway).