I am offering on a short sale home in Sarasota county Florida.? It has the following.? 1.) HOA fees outstanding 2.) taxes for 2013? 3.) a second mortgage.? I am waiting for the bank to either counter or accept my offer.? The bank is getting a BPO and Appraisal completed.? They have booked an auction?foreclosure sale just days after the expected closing.? Am I better to go to auction or better to work with the short sale procedure?? What should I expect if I go with foreclosure as far as owing the HOA, taxes, and second?? I do know the realtors want the short sale but that I am sure has to do with their income and not my wallet.
“?I do know the realtors want the short sale but that I am sure has to do with their income and not my wallet.” < Bingo!
If you really want the house, be prepared to act on both tracks.
If you buy the senior ( 1st position by recording date or subordination agreement) ?loan at a foreclosure (trustee sale) auction, the ‘junior debt’ (liens/loans including back due HOA) are ‘wiped out’ to you. Exceptions are property taxes and IRS liens (IRS has redemption rights w/in 120 of trustee sale).
Problem w buying at trustee sale is/are:
auctions are often postponed - again and again (and you need to be there)
you need to pay cash
you may very well have competition from other 3rd party investors (< if there’s equity)
you need to be sure you’ve done thorough chain of title (loan/lien position) research before you bid
Notwithstanding the above issues (1 - 4) many have done very well via trustee sales.?
? Fcl. in Florida are thru the Court system. ?(Sales are often postponed as they are elsewhere.) ?In many (All?) counties, fcl. sales are conducted online. ?(I am not sure if you can go someplace to physically bid.)
? ?Problem is, I assume the mortgage is for more than what he is offering. ?He has no way of knowing, I am sure, what the starting price would be. ?His best bet, if he really wants the home, complete the deal he has.
Thx MikeT for the clarification re Florida … I’m get lazy too often these days