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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Messing with the opening foreclosure bid. Posted by Ward-CA- on September 12, 2003 at 10:04 AM In Reply to: Senior Foreclosure for Deed posted by Cary on September 12, 2003 at 9:20 AM : Ward, : If a senior lien is foreclosing, I believe that they will get the trustee's deed free of all of other liens and judgments if no one at the auction outbids him. : #1 - Does that mean that if the senior lien purposely wants to get the house as a REO, can't he inflate the opening bid near or above the FMV to discourage all bidders at the auction? Of course, this would probably require the trustor/homeowner to cooperate in "agreeing" with the fees and loan modifications. : #2 - Are there guidelines on how much we can inflate the opening bid on the fees as a senior lien holder (e.g. limits on attorney's fees, foreclosure fees, etc.)? : #3 - If there are guidelines on the fees, can't the lender simply do a "loan modification" with the cooperation of the trustor/homeowner to "increase" the amount of the lien and opening bid? : Thanks for your help. : Cary - CA -=-=-=-=-=-=-=-=-=-=-= Cary, #1. The beneficiary of a trust deed can't foreclosure for more than what is owed in order to discourage bidding at the trustee's sale. #2. The limit is that which is actually owed. #3. It would be rare indeed to find that level of "cooperation" between the party being foreclosed upon and the lender who's doing the foreclosing. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : If a senior lien is foreclosing, I believe that they will get the trustee's deed free of all of other liens and judgments if no one at the auction outbids him. : : #1 - Does that mean that if the senior lien purposely wants to get the house as a REO, can't he inflate the opening bid near or above the FMV to discourage all bidders at the auction? Of course, this would probably require the trustor/homeowner to cooperate in "agreeing" with the fees and loan modifications. : : #2 - Are there guidelines on how much we can inflate the opening bid on the fees as a senior lien holder (e.g. limits on attorney's fees, foreclosure fees, etc.)? : : #3 - If there are guidelines on the fees, can't the lender simply do a "loan modification" with the cooperation of the trustor/homeowner to "increase" the amount of the lien and opening bid? : : Thanks for your help. : : Cary - CA : -=-=-=-=-=-=-=-=-=-=-= : Cary, : #1. The beneficiary of a trust deed can't foreclosure for more than what is owed in order to discourage bidding at the trustee's sale. : #2. The limit is that which is actually owed. : #3. It would be rare indeed to find that level of "cooperation" between the party being foreclosed upon and the lender who's doing the foreclosing. 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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