How does a home auction work?

[Mantle2600]

So i've been living with my dad for about 6 months to help pay the mortgage. The house was in foreclosure and he tried to save it but they did'nt want any of that.

Now the house goes up for auction in 6 weeks, and I was wondering how these things work exactly.

Do you have to pay cash, or can you get financing like a regular mortgage and use that to bid?

I ask because if it's feasible I plan on trying to bid. Any help is greatly appreciated.

[Flasch186]

Im quite a bit surprised that they wouldnt let you purchase the house outside of the auction via financing, albeit without your dad being on the loan. Have you spoken to the bank and their manager? Gone to the news at that point?

[SelzShoes]

In my job (I run a land title company for a attorney) I've actually done forclosure auctions--rules may vary from state to state.

Usually you need money down at the end of the auction. It can be anywhere from 10% to 100% down. Must be in certified funds, no cash, no personal checks, no "I'll just run to the bank." If it only a percentage down, you may be required to have the remainder by the next business day.

You would have to have financing in place before the auction and money there.

I usually tell people to contact the plaintiff's attorney for bid amounts, but I don't know how that would work since your dad is the defendent.

It usually takes 30-days after the sale to have the deed transfered.

[Mantle2600]

I have'nt talked to the bank at this point. The sheriff showed up today to inform us of the situation.

The mortgage lender is Washington Mutual, and we live in Ohio.

He contacted lawyers who work with the bank, where you're supposed to put a lump sum of the back owed mortgage down as good faith payment, and then you pay the rest off every month on top of the regular mortgage bill, but after he paid these people 1500 dollars to do this in july, he just found out about a month ago that in Ohio you can't use out of state companies for this purpose.

So do you think if I went to the bank I would be able to purchase the house?

[Flasch186]

I have'nt talked to the bank at this point. The sheriff showed up today to inform us of the situation.

The mortgage lender is Washington Mutual, and we live in Ohio.

He contacted lawyers who work with the bank, where you're supposed to put a lump sum of the back owed mortgage down as good faith payment, and then you pay the rest off every month on top of the regular mortgage bill, but after he paid these people 1500 dollars to do this in july, he just found out about a month ago that in Ohio you can't use out of state companies for this purpose.

So do you think if I went to the bank I would be able to purchase the house?

Worth a shot, PLUS you may also tell them that you'll recoup their costs thus far in the foreclosure proceedings which could be in the thousands but certainly a motion of good faith. I would assume that they would rather see the house be purchased outright at market value today than deal with the proceedings of the auction and stuff, as long as it is cost effective. However, I dont really know, Im guessing.

[SelzShoes]

Worth a shot, PLUS you may also tell them that you'll recoup their costs thus far in the foreclosure proceedings which could be in the thousands but certainly a motion of good faith. I would assume that they would rather see the house be purchased outright at market value today than deal with the proceedings of the auction and stuff, as long as it is cost effective. However, I dont really know, Im guessing.

Yes, if you are looking into financing, contact Washington Mutual's attorneys. You may be able to have the auction delayed if you are actively looking for financing. Might be in you best interest to get an attorney who can negotiate the forms and filings necessary to delay the auction.

And the sooner the better--there is a point of no return.

In some states there is a 30 day recission period after the auction: meaning even after the auction you still have 30 days to pay off the mortgage.

[Mantle2600]

In some states there is a 30 day recission period after the auction: meaning even after the auction you still have 30 days to pay off the mortgage.

I assume when you say pay off the mortgage you actually mean pay, as in straight up cash. If so then thats not an option.

[SelzShoes]

I assume when you say pay off the mortgage you actually mean pay, as in straight up cash. If so then thats not an option.

Yes, but if you can get new financing, the money can be from that.

Your best bet is to talk to an property attorney--they will be better able to assess your options in the state you live.

[stevew]

WaMu are straight up fuckheads from some family experience with them in the past. They would sometimes not credit my b-i-l's account properly, and then send him 60 day late notices, and then he'd straighten it out but it would take hours. He'd be like "someone from you guys cashed my fucking check, so where is the payment credited at."


I normally wouldn't have believed him about this, as he is a bit of "teller of tales," but I did some WaMu googling and found them to be inept assholes to many others.

[stevew]

Another one of their tactics would something to the effect of receiving a payment via the phone, and debit it from your account. And then like 2 months later return that payment to you and send you a letter that you were now X months past due, and need to pay X amount of extra fees.

[Mantle2600]

Well I found out today that they sold the loan to Wells Fargo. They're supposed to get back to my dad monday so we'll see what happens. Thanks for the advice though guys. Much appreciated.