My husband and I are interested on a house but it's going on auction on the 23. The house is currently a foreclosure thought chase. I know the property was on the market a couple of months ago then got taken down and came back on the market last month at $170,000. The house is worth more then that in the neighborhood is in. We went to an open house today and love the house but were not able to talk to the agent because we needed to leave. We have not secure a mortgage pre-approval. Why would the bank put the house on auction instead of waiting for a sale? and can we get pre-approve in a short time to try and bid on the home by the 23.
Find out the rules of the auction - are they only allowing cash buyers? It's possible there's something wrong with the house that will make it impossible/extremely difficult to get a mortgage for. Otherwise, they might just want it done quickly.
How savvy are you on the whole house buying process? Buying at auction can be complicated, so make sure you do your research, possibly consult with a real estate lawyer so you know exactly what you're getting yourselves into.
The auction is accepting cash or conventional mortgage. We have not secure financing yet but just submitted our information to quicken loan. We really love the house but also think that their is something wrong with it because is a good price for the area.
Eeek, I would stay away from quicken. Go to a local mortgage broker with a good reputation (ask for recommendations/read reviews online). You'll probably be required to close in 30 days or less with the auction and a giant loan place like that is not the best route to go.
I'm sure there is something wrong with the house - no one is giving them away. Find out if you can get an inspection before the auction to see what the problems are.
Eeek, I would stay away from quicken. Go to a local mortgage broker with a good reputation (ask for recommendations/read reviews online). You'll probably be required to close in 30 days or less with the auction and a giant loan place like that is not the best route to go.
I'm sure there is something wrong with the house - no one is giving them away. Find out if you can get an inspection before the auction to see what the problems are.
I did not personally deal with them, but I've heard some pretty negative reviews from others about them being slow and losing paper work. We originally started our process with WellsFargo (we do our banking with them). They were okay, but it was always hard to get in touch with our point person. We ended up in a bidding war for a house and were told that the listing agent did not like WellsFargo because they were not known for making closings happen on time. They told us they liked a local company better so we got a last minute pre-approval from them (in addition to our WF pre-approval).
We didn't get that house, but I was glad we ended up with the local place. They gave us a better rate (.25% lower than WF) and they were extremely easy to get in touch with and work with. Seriously, I liked our loan officer better than the realtor. They got our loan application processed in 21 days, so we could have closed early if we wanted to.
If you work with a realtor, I would get a recommendation from them on the best local place to get a loan. The bigger banks tend to be a PITA to work with.
Stay away from Quicken. We found them to be a nightmare to deal with just to get to closing. The agent was a total screw up and almost cost us our house because he didn't do his job. Short story, scheduled our closing. I kept checking with him to confirm it- don't now why but I must have sensed something. We're ready to leave for closing, we have big rental truck almost loaded. Phone rings Closing cancelled. Agent had sent appraisal request out but never checked to see if it was done, he ASSUMED it had been done but he'd never checked it, it hadn't. THere was other screw ups on his part but this caused me the most stress. They pushed the appraisal through, we closed 4 days later, our stuff still sitting on truck and me paying extra to keep the truck all that time. If the appraisal hadn't gone well we could have lost the house.
We bought our current house at auction.
Quick back story: we had wanted to build this model but bought a 32' power boat instead. A few years later we're again ready for bigger house. See this one for sale. Price too high, seller wouldn't budget. Later learned there had been fire, he bought it cheap and flipped it. Wantd to make a killing. Didn't sell. Several months later I happen to drive by and see auction sign. There were either 7 or 9 bidders there day of auction. Seller rejected all bids as too low. Seller revealed his minimum price, no bidder willing to meet it. Everyone left, we stayed behind. We had had the highest bid when they closed the auction. We offered to split difference between our highest bid and seller's minimum. Seller agreed. While signing paperwork another bidder returned, hoping to make an offer but he was too late.
As far as auction. This wasn't the bank selling it but this seller needed to get it out of his inventory, get money back and move on to his next project. I'd guess the bank wants it out of their inventory.
Did we get a steal? No, did we get a good price? Yes. We LOVE this house and had wanted to build it anyway and it came with a 3 car garage -we'd have built a 2 car but the 3 works so much better - H has toys.
I've also been part of 2 auctions of other homes. My grandparents, lots of bidding sold at the auction at a great price. My parents home, big house with lots of land. Bids didn't reach the minimum my brother and I had set. Worked out well though, he decided he really did want it and bought me out. He paid me half our agreed upon minimum. He lived there several years and then sold it for a profit and I'm glad about that.
Go in to the auction with a fair price in mind. They will most likely have a minimum price. You might get a steal but I wouldn't count on it.