can someone explain this/ bank foreclosure/ sheriff sale on house

[.45Caliber]

ok, there is this house I've looked at that's been sitting empty for about a year. Now, the roof is leaking and the ceiling is bad. Plus, the board of health wont let anyone live there because the septic tank leaks. In other words, it needs major repairs.

Now, I called the bank and they said they cant sell it until it goes through the sheriff sale. They said its going through the sale "soon". We talked to the previous owne,r and she cant sell it because the health dept wont allow her because she would have to update the septic tank. She does not have the money.

Why does the bank just let the house sit there and rot away? Wouldn't they want to get rid of it, especially when they know someone wants the dump? Also, the bank is aware of the roof and the septic tank.

Lastly, there are no liens on this house. The ladies hubby died and her step son died the next month. She just could not afford to live there. She tried to sell it but the health dept said it has to be repaired. She could not afford it and just moved out one day.

Why does it take so long for the banks to sell it?

[3v1lj03]

Lawyers

[B.E.N.]

If their are no liens then why does the bank own it now? They had to buy it from someone...her or from the city. The women still holds deed to the property if their were no liens and/or no foreclosure. Unless she just sign the deed over, can't imagine why any person would do that with no profit.

You can sell a house as is and not warrant the condition of the property. Now then city might not issue a Certificate of Occupancy until the repairs are made and they inspect the property. But they would not prevent the title from being transfered unless the bank had liens against the property. Have you researched the title to the property yet?

You must be looking into a hell of deal if you want to put a new roof on and dig a new septic system. Yikes...

[T_Own]

^^ true. if its hers she can sell the title anytime.
at my old house we had to replace the roof and change the septic system over the years. NOT CHEAP

[.45Caliber]

The board of health told her she had to repair the septic or move out. She had a buyer for it, but they didnt want it because of the septic tank. So, she just moved out because she couldnt afford to fix it.

She's giving it back to the bank, she has no use for it. She is an old lady.

I talked to the guy at the bank and he looked it up. He said the bank cant sell it until it goes through the sheriff sale. The foreclosure is in the process.

Its just hard to belive that it takes this long for all this to happen. This place has been empty for a hell of a long time.

[Johny-too-small]

.45Caliber: best avy ive seen, yet. omg! lmao! hahahaha

[.45Caliber]

Thanks Johny....lol... The board took my other one off..... Said it was against their rules.

[sooners04]

I've been looking into buying foreclosures like this but it seems there is a lot too it as the original owner can buy it back if they pay the money within a certain time frame and a lot of legal issues. But you can pick up houses cheap this way.

[B.E.N.]

The board of health told her she had to repair the septic or move out. She had a buyer for it, but they didnt want it because of the septic tank. So, she just moved out because she couldnt afford to fix it.

She's giving it back to the bank, she has no use for it. She is an old lady.

I talked to the guy at the bank and he looked it up. He said the bank cant sell it until it goes through the sheriff sale. The foreclosure is in the process.

Its just hard to belive that it takes this long for all this to happen. This place has been empty for a hell of a long time.

Here's your answer if you care to read it all...

http://www.raincityguide.com/2008/08...-a-short-sale/

[.45Caliber]

Here's your answer if you care to it all...

http://www.raincityguide.com/2008/08...-a-short-sale/

BEN, thanks this will help!!!

[B.E.N.]

I've been looking into buying foreclosures like this but it seems there is a lot too it as the original owner can buy it back if they pay the money within a certain time frame and a lot of legal issues. But you can pick up houses cheap this way.

And that would happen as many times as people win the lottery...because that is what it would take for most people to get it back.

5+ years in real estate...never once even heard of that happening. Not one story even.

[.45Caliber]

And that would happen as many times as people win the lottery...because that is what it would take for most people to get it back.

5+ years in real estate...never once even heard of that happening. Not one story even.

Ben,
Whats the purpose of the sheriff sale? I've been at them and the only people who buy them are the banks that lended the owners the money.

Bank lends deadbeat money. Deadbeat does not pay. Here comes sheriff sale and the same bank buys it back? Of course by now deadbeat owes more on it than whats it worth. Why even have the sheriff sale?

[B.E.N.]

Ben,
Whats the purpose of the sheriff sale? I've been at them and the only people who buy them are the banks that lended the owners the money.

Bank lends deadbeat money. Deadbeat does not pay. Here comes sheriff sale and the same bank buys it back? Of course by now deadbeat owes more on it than whats it worth. Why even have the sheriff sale?

Sherriff Sales are required by court order during the foreclosure process. As much as people bag America lately the law won't just let the bank come in and say get out because you have not paid the mortgage. They have a lien against the property and can force a sale with this lien (foreclosure). The court then orders the house auctioned at a public auction to the highest bidder. That bid is supposed to satisfy the lien in theory.

BUT...many times there is no equity in the property because the mortgage is for close to what the property is worth. Instead of taking a big loss the bank buy the houses and attempts to sell the house with a Realtor.

Banks aren't interested in owning that type of real estate. It is a hassle to hire a Realtor and have the house sit on the market but it beats the option of taking a huge lose on the mortgage.

This is why if you have sub par credit you get a higher interest rate. The bank is trying to justify the increased risk of lending to you.

That is pretty vanilla but you should the picture.

[B.E.N.]

If you are looking for a deal on a house try this HUD site. Some are foreclosed or in need of repair but you can get the for cheap and put some sweat equity in.

http://www.hud.gov/homes/homesforsale.cfm