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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Bid Padding By Lender? Posted by SeanW on January 22, 2004 at 6:55 PM Ward, N.C. has a similar law as CA's, about predatory lending. I recently attened an auction where I knew the mortgagee was owed about $78000. N.C. law allows the trustee to charge up to 5% (but most charge much less, b/c of competing with each other for business.) I was prepared to bid $88000. The opening bid by the lender should have been about $80000 under normal circumstances... (maybe $82000, if is this was one of those rare trustees that charges the full 5%.) Anyway, the opening bid was $86900. I put my name on it for $87000, and now I'm waiting out the 10 day upsit bid period. (1) Would I (or the home owner) have any right to see an itemization, of how the mortgagee's bid was determined? (2) Suppose there was something fishy in their totals. Do you think that a re-sale would be ordered? Or do you think some kind of refund would be made? Would I or the ex-owner stand the better chance of obtaining it? In the real world, I'm probably not going to do anything. And the auctioneer told me he'd met the owner, who said he wasn't going to file BK. So, I figure the best thing, is to just shut up... and wait for my trustee's deed. But, I'm curious what you think of the situation. Final comment: This property was a rental. The owner did not live there. Might that undo predatory lending restrictions? Follow Ups: Offering Better Explanation, After More Thought.... SeanW 1:30 AM, 01/23/04 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Ward, N.C. has a similar law as CA's, about predatory lending. : I recently attened an auction where I knew the mortgagee was owed about $78000. N.C. law allows the trustee to charge up to 5% (but most charge much less, b/c of competing with each other for business.) : I was prepared to bid $88000. The opening bid by the lender should have been about $80000 under normal circumstances... (maybe $82000, if is this was one of those rare trustees that charges the full 5%.) : Anyway, the opening bid was $86900. I put my name on it for $87000, and now I'm waiting out the 10 day upsit bid period. : (1) Would I (or the home owner) have any right to see an itemization, of how the mortgagee's bid was determined? : (2) Suppose there was something fishy in their totals. Do you think that a re-sale would be ordered? Or do you think some kind of refund would be made? Would I or the ex-owner stand the better chance of obtaining it? : In the real world, I'm probably not going to do anything. And the auctioneer told me he'd met the owner, who said he wasn't going to file BK. So, I figure the best thing, is to just shut up... and wait for my trustee's deed. But, I'm curious what you think of the situation. : Final comment: This property was a rental. The owner did not live there. Might that undo predatory lending restrictions? 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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