One loan. First auction went REO. Why is another auction scheduled for the same loan? Can I buy?


#1

How can there be two auctions for the same loan? The first auction occurred a few months ago and is reported as an REO. Now a notice has been posted on the property for a new foreclosure auction.

What happened to the first auction results? I want to bid at the upcoming auction. What are the risks?

Thanks!


#2

Maybe the first auction was faulty and the Trustee’s Deed was rescinded. If the Trustee is selling under that same Deed of trust, you will get a Trustee’s Deed.
Question - since no 3rd party bidder thot it worthwhile to bid the first time, why do you think it would be worth bidding now? If they didn’t drop the bid to encourage bidding the first time - they probably won’t this time, either.


#3

Good point. I was actually in a short sale for this property and found out about the first foreclosure after it had already happened. I’m considering a bid on the property. But as a novice, this is a dangerous game and I’m just started…


#4

Hi Michael,

It could be (as miketh noted) that the prior trustee sale was rescinded and it’s now comin’ around again … It could also be that the previous trustee sale was a junior loan (e.g. a 2nd or a 3rd) and a senior loan is now foreclosing. On occasion a junior lender will opt to foreclose but may not be willing or able to payoff the senior debt. Hence another trustee sale may occur on the same property, albeit this would be on a different deed of trust. If you’re a subscriber to Foreclosure Radar, you can see the loans and notice of trustee sale (NTS) under the property Transaction History Details and also under the Foreclosure Profile Report. Check for more than one NTS (on different loans).