there was a house that was in pre forcloser, and the bank that had the loan on it sold it to another bank.?
Thursday, 19. August 2010
i thought banks are NOT in the business of real estate? so now its bank owned by another bank. the house market value is 571,000. the loan in default was only 470,000 so there was a lot of equity….but the bank sold it to another bank for 497,717…and now the second bank is going to sell it for it’s market value and keep the profit?? i thought banks were not in the business of real estate…isnt it a liability for a bank ot hold on to a house like that till it sells….so be sides other investors and real estate agents….now theres more competitions with other banks when theres a notice of default on a propertry wit a lot of equity….the agent said it was very common??
Kenneth D Says:
The loan was probably sold long before it went into foreclosure. The record holder of a mortgage is often not the actual holder. As for the increase in price, don’t forget about the cost of foreclosure. The increase is probably due to taxes, insurance, cost of sale, attorney fees and maintenance during the foreclosure. This is very common.
Did you go to the Sheriff’s sale? Was it held yet?
gin_in_mi Says:
ANYONE can purchase a forclosed property.. or one that is going into forclouser…
In the case cited… if the orginating mortgager sold the property to another bank… AT a profit.. they HAVE to pay the forclosed owner the difference. However the purchasing bank, once they sell the property keeps the profit.. just as any other buyer would.
In most states.. the forclosed property owner has 6 months from the date of sheriffs sale to *save* their property by paying the loan in full to the originating mortage holder…
Check with an ATTORNEY not sales agent… remember they stand to make a commission off that home as well as the banks involved…
Good luck!