When a bank purchases a house at a sheriffs auction, who are they actually buying it from?
April 26, 2010 by
Filed under House Auctions
If the bank loaned the home owner money to buy the house in the first place, and then they buy it back at auction, isn’t the bank paying for the same house twice.
The mortgage company at a lesser amount.
the bank will sometimes buy it to protect their interest in it. if no one is bidding a decent price , the loss is too great, they will buy it and then try to sell it.
Not really. The bank doesn’t own the house when it has a mortgage, it only has the right to take the house and put it up for sale. If there are no bids high enough to pay off the mortgage, the bank will “buy” the house, but this only means it now gets the title to the house. It doesn’t lay out any more money. Once it gets title, it can fix the place up and try to resell it on the open market.
they are buying it back at the mortgage value price; basically just protecting their investment;unless bidders are higher than the mortgage and then they get paid off; and everyone below bank loses; they do end up paying committee fees but a small price to pay to save thousands; it forecloses all below them and gives clear title for them to sell it and recover loss
No the bank never loses, the supposed owner get defaulted on then has to go bank thru the mortage process again and this time hope to be approved. If the supposed owner goes belly up on the first loan he/she can forget about eing approved for repurchase as the bank will deem them a risk.
And usually after the forfeiture by the sherrifs dept.seizure the ” owners” are already deem a risk b/c of the way they came to be out of the house to start with.
Good luck
What happens is the sheriff sale is the county administrator selling the property for the lender. The bidders are people who either want to buy the home to live in, rent out, or use as leverage to make money.