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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Bidding levels at foreclosure auctions Posted by Ward-CA- on January 08, 2004 at 6:04 AM In Reply to: auction percentage posted by Camille Calenda on January 07, 2004 at 12:42 AM : Hi Ward! : Happy New Year! Hope your holidays were good. My question is...what percentage of the LTV are you finding that banks get at auction if the property gets sold. Do they typically recover 80% of the value or is 80% of what is owed? I just need a rule of thumb. : Thank you!! : Camille :) =================== Camille, The bank's opening bid generally equals 100% of what they are owed. That means they total up all the unpaid interest, principal, late charges, out of pocket expenses, the trustee's foreclosure fees and any other miscellaneous expenses to determine their opening bid. So the bank's beginning or opening bid amount may or may not attract outside bidders, depending on the bidders' perception that it's less than the Fair Market Value of the property. The bidders at a sale usually want to pay no more than 75% to 80% of the Fair Market Value of the property. If an area is in a rampant seller's market, bidding competition at the foreclosure auctions is fierce and can reach the level of 90%-95% of retail value! Crazy I know, but that's occuring now in Southern CA. In other areas that aren't as nuts, like WA or OR you can expect to get deals at 70%-75% of retail value. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward! : : Happy New Year! Hope your holidays were good. My question is...what percentage of the LTV are you finding that banks get at auction if the property gets sold. Do they typically recover 80% of the value or is 80% of what is owed? I just need a rule of thumb. : : Thank you!! : : Camille :) : =================== : Camille, : The bank's opening bid generally equals 100% of what they are owed. That means they total up all the unpaid interest, principal, late charges, out of pocket expenses, the trustee's foreclosure fees and any other miscellaneous expenses to determine their opening bid. : So the bank's beginning or opening bid amount may or may not attract outside bidders, depending on the bidders' perception that it's less than the Fair Market Value of the property. The bidders at a sale usually want to pay no more than 75% to 80% of the Fair Market Value of the property. : If an area is in a rampant seller's market, bidding competition at the foreclosure auctions is fierce and can reach the level of 90%-95% of retail value! Crazy I know, but that's occuring now in Southern CA. In other areas that aren't as nuts, like WA or OR you can expect to get deals at 70%-75% of retail value. : : Hope this helps. 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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