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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Minimum bid and deficiency judgments... Posted by Ward-CA- on September 24, 2003 at 7:09 AM In Reply to: Sale Tomorrow - 1st lienholder Foreclosure question posted by Brian on September 24, 2003 at 6:05 AM : Thank goodness for this board and website. I've been doing my homework for almost a year attending sales, talking to bidders, bank reps etc. : Many of the sales in this area that I've been to have been 2nd lienholder foreclosures and some Home Owner Association Foreclosures. I'm aware that in "these types of sales", you are obligated to pay off the lienholder in the 1st position but in the case of this particular a sale, (tomorrow) of a mortgage foreclosure with the 1st lienholder foreclosing, I had a question: : 1st Mortgage amount is about $80,000. No other liens / mortgages/ association dues at all. I sure this is going to sound stupid.... but the high bidder is'nt obligated to satisfy this lienholder correct? - Just the amount of his/her winning bid? (for example, if the high bid is $50K for example). The sale is in PA by the way. Call it aprehension but I try to be really thorough (to much at times) before making a move. I just want to be sure. : I'm aware that many Mortgages have deficiency judgement clauses so the company can "go after" the "foreclosed individual" for the difference in the amount owed and the sale amount. Can anyone give me an idea of an overview of this for my own information? : After about a year of attending appx 30 sales, I'm comfortable enough to begin "making a move" on some of these. (Possibly one of a few tomorrow). : Thanks, : Brian =?=?=?=?=?=?=?=?=?=?= Brian, One thing you didn't mention in your homework litany above is doing your title record research at you county recorder's office. That's one of the most important things you have to do and you are silent on that topic. So you've got me worried about the thoroughness of your preparation for tomorrow. The lender's opening bid at the auction is what the lender is willing to start the bidding at. If it opens for less than what's owed the lender and your bid is just a penny more and no one else bids, then your bid is the highest and you'll get the title to the property. PA allows a lender to pursue a deficiency against their original borrower if the funds garnered at their foreclosure auction amount to less than the current balance owed them. But most of the time lenders forego going after any deficiency, since it's highly likely that the defaulting owner doesn't have anything to satisfy it with anyway. It's that old saw about not throwing good money after bad. I, for one, would still like to know what kind of title work you're doing on these deals. Hope to hear you're checking the title at your local recorder's office and not relying on hearsay or guesstimates. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Thank goodness for this board and website. I've been doing my homework for almost a year attending sales, talking to bidders, bank reps etc. : : Many of the sales in this area that I've been to have been 2nd lienholder foreclosures and some Home Owner Association Foreclosures. I'm aware that in "these types of sales", you are obligated to pay off the lienholder in the 1st position but in the case of this particular a sale, (tomorrow) of a mortgage foreclosure with the 1st lienholder foreclosing, I had a question: : : 1st Mortgage amount is about $80,000. No other liens / mortgages/ association dues at all. I sure this is going to sound stupid.... but the high bidder is'nt obligated to satisfy this lienholder correct? - Just the amount of his/her winning bid? (for example, if the high bid is $50K for example). The sale is in PA by the way. Call it aprehension but I try to be really thorough (to much at times) before making a move. I just want to be sure. : : I'm aware that many Mortgages have deficiency judgement clauses so the company can "go after" the "foreclosed individual" for the difference in the amount owed and the sale amount. Can anyone give me an idea of an overview of this for my own information? : : After about a year of attending appx 30 sales, I'm comfortable enough to begin "making a move" on some of these. (Possibly one of a few tomorrow). : : Thanks, : : Brian : =?=?=?=?=?=?=?=?=?=?= : Brian, : One thing you didn't mention in your homework litany above is doing your title record research at you county recorder's office. That's one of the most important things you have to do and you are silent on that topic. So you've got me worried about the thoroughness of your preparation for tomorrow. : The lender's opening bid at the auction is what the lender is willing to start the bidding at. If it opens for less than what's owed the lender and your bid is just a penny more and no one else bids, then your bid is the highest and you'll get the title to the property. : PA allows a lender to pursue a deficiency against their original borrower if the funds garnered at their foreclosure auction amount to less than the current balance owed them. But most of the time lenders forego going after any deficiency, since it's highly likely that the defaulting owner doesn't have anything to satisfy it with anyway. It's that old saw about not throwing good money after bad. : I, for one, would still like to know what kind of title work you're doing on these deals. Hope to hear you're checking the title at your local recorder's office and not relying on hearsay or guesstimates. : : Hope this helps. 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