foreclosure laws for the lender

[tlove]

What is the name of your state?
North Carolina

I was trying to buy a house for a friend in foreclosure (sale date 3/17/2005) by working a short sale with her lender. They have the authorization to release info to me and I have a notarized power of Att. for this house. The payoff being $153k

The lender, or women I was working with wouldn't discount the price.
Which is irrelevant. However she was trying to offer the house at $168K.
Is she allowed to "sell" the house at more than what is owed if she is the lender? and profit from that? I thought that was illegal?

 

[seniorjudge]

Q: Is she allowed to "sell" the house at more than what is owed if she is the lender? and profit from that? I thought that was illegal?

A: Unless there is some strange law in your state that I have never heard of, a seller can sell a house at whatever price the seller can get.

 

[tlove]

North Carolina

That is just it. She isn't the seller, she is the lender. She won't "own" the house unless it doesn't sell at the auction? Since I have power of att. over the property...isn't that like her saying to the owner your payoff is $153K, but you have to pay $168k?

 

[seniorjudge]

Q: She won't "own" the house unless it doesn't sell at the auction?

A: Yes.


Q: Since I have power of att. over the property...isn't that like her saying to the owner your payoff is $153K, but you have to pay $168k?

A: Your power of attorney is from a person, not from a piece of land.


Anyway, the GENERAL rule in a foreclosure is that the lender at the auction says I want $x and puts in a bid for that amount. If you want to up that bid by $1, you may do so and buy the land. If (big word) the lender gets more than what the costs and the amount of the loan is for, then that money will be returned to the owner of the land.

Different states do different things. Check with a local real estate attorney for the vagaries of your state's foreclosure laws.