What does it mean when a mortgage company buys a home in a sheriff real estate sale?
Posted on June 30th, 2010 in Renting & Real Estate | 2 Comments »
Robert J asked:
I was reviewing the local sheriff real estate sale results and noticed that several houses were bought by mortgage companies. Don’t they want to get rid of these houses? Why are they buying them?
2 Responses
Mount Shasta Real Estate
When a house is foreclosed on and the bids are not high enough the mortgage company will buy it back so they can list it themselves. This is very common.
Thermage Before And After
It just means that nobody bid at the sheriff’s auction on that property.
The mortgage company that foreclosed will normally set a Reserve (or minimum price) they will take at the auction. If nobody buys it for that price, ownership reverts to the mortgage company for that price and then the mortgage company has to sell it through conventional channels (listing it via a realtor).
So the mortgage company isn’t really “buying” these properties. They’re just getting stuck with them because nobody else will buy them.