What should I offer?

[montashe]

What is the name of your state? Kentucky

My husband and I have been looking at properties, one of which has already been forclosed on, and according to the listing office, is owned by the mortgage company. What is the best way to find out how much was due on the mortgage when the forclosure went through so that we can make an offer close to that amount?

 

[seniorjudge]

"What is the best way to find out how much was due on the mortgage when the forclosure went through so that we can make an offer close to that amount?"

This amount will probably be on the trustee's deed.

However, that amount has nothing to do with the value of the land. If, for example, I have a $100K piece of property and have a $10K mortgage on it that is foreclosed, do you think the lender will sell you the land for $10K?

Find a reputable real estate agent and a good title company to help you out. You need some expert advice...I can see that from your post.

Good luck.

 

[montashe]

However, that amount has nothing to do with the value of the land. If, for example, I have a $100K piece of property and have a $10K mortgage on it that is foreclosed, do you think the lender will sell you the land for $10K?

My thoughts were that the mortgage amount must be high enough that the property did not sell at the forclosure auction, say, at $70K for the $100K property. Wouldn't the mortgage company have been willing to let it go at $40K or so if they only had a $10K interest left?

But you're right (since a little knowledge is dangerous) -- we were planning to talk to an agent for expert advice on Monday -- I was just wondering what the document was called that would list the amount remaining at the time of forclosure.

 

[seniorjudge]

"My thoughts were that the mortgage amount must be high enough that the property did not sell at the forclosure auction, say, at $70K for the $100K property. Wouldn't the mortgage company have been willing to let it go at $40K or so if they only had a $10K interest left?"

Lenders generally will not sell at a loss.

In any event, I buy and sell a lot of property and I always use a lawyer, title company, and real estate agent. Another of my judge buddies buys and sells a lot of property and he never uses a lawyer, title company, or real estate agent.

I couldn't sleep at night if I conducted business like he did but he has no problem with it!