Problems with foreclosure sales – the impact is pervasive
The Associated Press just wrote a terrific story that highlights the extent of the foreclosure problems we’re facing, but from a little different perspective.
So You Bought a Foreclosed Home – Now What?
If you’re facing foreclosure, you may think this issue doesn’t pertain to you, as you’re in no position to go out and buy a foreclosed property. I totally disagree. This issue impacts all of us. As the article reflects, and as I’ve been saying for months:
purchasers of properties at a foreclosure sale have legitimate reasons to be concerned about the legitimacy of the title they’re obtaining.
Everyone is realizing this, and it’s undoubtedly causing would-be purchasers not to go to courthouse auctions and buy. Well, guess what? If people aren’t buying properties at a foreclosure sale, what’s the point of the sale? Essentially, there is none – and there’s the rub. A sale is supposed to be more than just a rubber-stamp on a title to a bank. A sale is supposed to be a way to gauge the fair market value of a property, so as to: (1) ensure the homeowner collects the surplus (the difference between the sale price and the amount of the final judgment; or (2) ensure the extent of the homeowner’s deficiency (the difference between the amount of the final judgment and the sale price) is minimized.
The more I think about it, the more I’m convinced that all of these sales that are being conducted where there are title problems, the homeowners have legitimate grounds to object to the sale. After all, their chances of having anyone bid fair market value for a home (and getting a surplus or minimizing their exposure for a deficiency judgment) are reduced when everyone questions the legitimacy of title acquired by a foreclosure sale.
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