If a home was foreclosed on, and now bank owed. Does the bank have a "format" to selling it? For example, can they just sell it to who they want or must they do it in a fair manner (like auction, sealed bids, etc?) Just curious... are their any laws on this?
2007-08-18 06:17:07 · 5 answers · asked by lucas_dunaway 1 in Business & Finance ➔ Renting & Real Estate
Yes, there are very strict laws.
The rules for sale and liquidation of assets such as real property to pay debt are specific and differ only in small details per county or city or state.
Read up on line the rules of your state on line or ask a lawyer, attend classes explaining the important points.
The real estate board in your state will also have some idea how it works so try and ask any one of them your questions. Even the banks will be able to answer you as well.
2007-08-18 06:31:07 · answer #1 · answered by QuiteNewHere 7 · 0⤊ 0⤋
In some states the foreclosed owner has an additional redemption period after the foreclosure of the home. They would have to pay cash for what is owed plus all foreclosure expenses. Of course, almost all people who are foreclosed on have no way to do this.
As far as selling it, it is a private asset - not a government one. So they can make a private sale, auction it or whatever they think is best. as long as they follow the same laws covering real estate transactions that any seller must.
2007-08-18 13:36:45 · answer #2 · answered by rlloydevans 4 · 0⤊ 0⤋
Depends on the bank. It is only governed by their company polices. Of course they may have some federal guidelines, but for the most part they have policies for handling this situation.
If you're considering putting in an offer on one, just make sure that #1 you are fully lender approved with documentation to prove it, and #2 be prepared to wait awhile for their answer. See banks/lenders are corporate thinkers, not quicker decision makers. Good Luck!
2007-08-18 13:31:45 · answer #3 · answered by Alterfemego 7 · 0⤊ 0⤋
They are sold like other homes, thru a real estate agent and thru the MLS. They can not sell it to "who they want", as that op en them up to fraud. They take written bids just like everyone else. The choice to accept a bid is done by a committee, not an individual person, and it one reason it can take up to three months before you hear a word.
2007-08-18 13:25:01 · answer #4 · answered by Landlord 7 · 0⤊ 0⤋
They can do what they wish as long as they get the best price they can "in a commercially reasonable manner".
2007-08-18 15:19:33 · answer #5 · answered by Anonymous · 0⤊ 0⤋