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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Help In Texas Posted by Steve H. on September 01, 2001 at 7:23 AM In Reply to: Re: Help In Texas posted by Ward-CA- on August 31, 2001 at 8:54 PM : : Need some advice. I am interested in a house that is part of a Chapter 7 bankruptcy proceeding. There is a first mortgage of $430,000, a second for $49,000 and a third for $143,000, plus the taxes are in arrears to the tune of $15,000. I expect a foreclosure sale in the next two months, but the creditors' meeting hasn't taken place yet. Also relevant is that the house was on the market for $660,000 for several months with only one bid - mine. The owner couldn't clear title with my bid, so declared bankruptcy. : : So, here are my questions. First, is there any way to get this house without the foreclosure? Second, if it goes to foreclosure, are the second or third lienholders likely to bid, and if so, how much. Third, assuming I can arrange to bid at auction, will the first lienholder bid more than their $430,000? And fourth, if I can't bid at auction, what would the first lienholder likely sell me the property for? : : Thanks much to anyone who has advice. : =•=•=•=•=•=•=•=•=•=•=•= : Steve, the owner could sell the property to you, with the approval of the bankruptcy court. The chances of the junior lien holders bidding at the trustee’s sale are slim and none. : Your bidding competition isn’t going to come from the beneficiaries of the junior liens. Rather it’s going to come from the amateur air heads who seem to have more money than brains and who will bid and bid as if there’s no tomorrow. : Which lien is the subject of the foreclosure? That’s the one that will be overbid by the amateurs up to 80% of the perceived fair market value of the property. Ward, thanks for the reply. Since no one has foreclosed yet, I'm just guessing it will be the first. From what I understand, the bankruptcy trustee has called a "creditors' meeting", where creditors will be apprised of liens and assets (supposedly there are no assets other than the property). I imagined it would be the first forclosing. Someone else posted that the second and third might bid up to the value of their interest in the property, plus that of senior liens. You seem to think that they wouldn't bid, which was what I was figuring, especially considering that the market is so depressed here. Any additional comments on the second or third bidding? One final question. I did not find any evidence that the second had been released, but the trustee in bankruptcy said they only two loans listed on the home - $430 and $143. If that were true, is it more likely the second would bid? Steve Follow Ups: Re: Another helping of help. Ward-CA- 8:50 AM, 09/01/01 (6) Re: Another helping of help. Steve H. 1:22 PM, 09/01/01 (5) Re: Now let's see... Ward-CA- 4:53 PM, 09/02/01 (4) Porucznik Borewiczmnb Porucznik Borewiczmnb 5:09 PM, 07/25/06 (0) Re: Now let's see... Steve H. 7:38 PM, 09/02/01 (2) Re: Fingers crossed... Ward-CA- 8:10 PM, 09/02/01 (1) Re: Fingers crossed... Steve H. 10:55 AM, 09/04/01 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : Need some advice. I am interested in a house that is part of a Chapter 7 bankruptcy proceeding. There is a first mortgage of $430,000, a second for $49,000 and a third for $143,000, plus the taxes are in arrears to the tune of $15,000. I expect a foreclosure sale in the next two months, but the creditors' meeting hasn't taken place yet. Also relevant is that the house was on the market for $660,000 for several months with only one bid - mine. The owner couldn't clear title with my bid, so declared bankruptcy. : : : So, here are my questions. First, is there any way to get this house without the foreclosure? Second, if it goes to foreclosure, are the second or third lienholders likely to bid, and if so, how much. Third, assuming I can arrange to bid at auction, will the first lienholder bid more than their $430,000? And fourth, if I can't bid at auction, what would the first lienholder likely sell me the property for? : : : Thanks much to anyone who has advice. : : =•=•=•=•=•=•=•=•=•=•=•= : : Steve, the owner could sell the property to you, with the approval of the bankruptcy court. The chances of the junior lien holders bidding at the trustee’s sale are slim and none. : : Your bidding competition isn’t going to come from the beneficiaries of the junior liens. Rather it’s going to come from the amateur air heads who seem to have more money than brains and who will bid and bid as if there’s no tomorrow. : : Which lien is the subject of the foreclosure? That’s the one that will be overbid by the amateurs up to 80% of the perceived fair market value of the property. : Ward, thanks for the reply. Since no one has foreclosed yet, I'm just guessing it will be the first. From what I understand, the bankruptcy trustee has called a "creditors' meeting", where creditors will be apprised of liens and assets (supposedly there are no assets other than the property). I imagined it would be the first forclosing. : Someone else posted that the second and third might bid up to the value of their interest in the property, plus that of senior liens. You seem to think that they wouldn't bid, which was what I was figuring, especially considering that the market is so depressed here. Any additional comments on the second or third bidding? : One final question. I did not find any evidence that the second had been released, but the trustee in bankruptcy said they only two loans listed on the home - $430 and $143. If that were true, is it more likely the second would bid? : Steve Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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