We won a foreclosure auction. Went to the court house to pay the winning bid for the auction. It came out to be $15,578. The doc stamps are processed on the 19th of this month. We found out that this is a junior lien. The senior lien is lis pendens. What are my options?

We walked into this blindly and I am deeply regretting it. Any help would be huge... The last thing I want is to be out $15K.

Oh boy, serious problems here, Bennut. So sorry that you had to create your first thread on the Real Estate Boards with such a tough situation. Welcome, by the way.

No use telling you that what you have just bought is basically nothing - you have simply stepped into the steps of the junior lienholder, let them off the hook and now are wondering just what the *&)% did you do? Think you have figured that out by now. Bad deal, all around...

I won't ask WHY you went to the auction and actually paid **$ for this because it is obvious that, had you known what you were bidding for, you WOULD NOT have been bidding!

Only thing you can do now to "possibly" cover the $15K is consult with a qualified real estate agent to see if you can, perhaps, negotiate with the first lienholder for a negotiated buy-out since it is still lis pendens (which simply means in everyday language that notice has been given that there is a problem with that particular piece of property although formal litigation may not have been started yet.

You are in way over your head and $15K to boot, you need an attorney RIGHT NOW to see if there is any way to salvage the situation. This is one time that you cannot do it on your own. Sorry for your situation - good luck - post back what happens...

Well, darn.

Yes, please post back.

quote:

Originally posted by Idaho Resident:
Oh boy, serious problems here, Bennut. So sorry that you had to create your first thread on the Real Estate Boards with such a tough situation. Welcome, by the way.

No use telling you that what you have just bought is basically nothing - you have simply stepped into the steps of the junior lienholder, let them off the hook and now are wondering just what the *&)% did you do? Think you have figured that out by now. Bad deal, all around...

I won't ask WHY you went to the auction and actually paid **$ for this because it is obvious that, had you known what you were bidding for, you WOULD NOT have been bidding!

Only thing you can do now to "possibly" cover the $15K is consult with a qualified real estate agent to see if you can, perhaps, negotiate with the first lienholder for a negotiated buy-out since it is still lis pendens (which simply means in everyday language that notice has been given that there is a problem with that particular piece of property although formal litigation may not have been started yet.

You are in way over your head and $15K to boot, you need an attorney RIGHT NOW to see if there is any way to salvage the situation. This is one time that you cannot do it on your own. Sorry for your situation - good luck - post back what happens...

Thank you, for the welcome. Indeed bad deal all around...

I was infact coaxed into a false sense of security. "Auctions sell for cheap, why not take a gander and get a nice home for a fraction of the cost". This is not at all what I expected and if I could go back in time I would have spent the money on a gun and blasted who ever came up with these scams.

Would any real estate attorney work? Or is there a specialized one for these sorts of cases?

This is literally a nightmare thats getting underneath my skin. Not only am I upset I just lost all of my life savings, the fact that I cant do anything about it makes it even worse.

Another question is in the event I cant get approval from the bank to afford paying for the house, am I still stuck between nothing? Can I not op out at all? Or did I just pay the HOA dues for that scumbag and bank of america still owns the house?

Welcome, Bennut. Bummer situation you find yourself in. I am so sorry to hear of it.

Your terrible experience is a warning to all: if it sounds too good to be true, it is.

Here's hoping for the best.

You bought a property without the protection of a Realtors' or Real Estate Attorney real estate sales contract, which carry title protection clauses and the advice of a Realtor or Real Estate Attorney. This is going to be a tough lesson. This a "legal issue"
Go straight to a Real Estate Attorney asap. Good luck to you.

This message has been edited. Last edited by: real estate lady,

quote:

Originally posted by Bennut:

Thank you, for the welcome. Indeed bad deal all around...

I was infact coaxed into a false sense of security. "Auctions sell for cheap, why not take a gander and get a nice home for a fraction of the cost". This is not at all what I expected and if I could go back in time I would have spent the money on a gun and blasted who ever came up with these scams.

Would any real estate attorney work? Or is there a specialized one for these sorts of cases?

This is literally a nightmare thats getting underneath my skin. Not only am I upset I just lost all of my life savings, the fact that I cant do anything about it makes it even worse.

Another question is in the event I cant get approval from the bank to afford paying for the house, am I still stuck between nothing? Can I not op out at all? Or did I just pay the HOA dues for that scumbag and bank of america still owns the house?

To answer the question "whether or not just any real estate attorney can handle the matter or whether there are so-called specialists in this area" isn't asking the right question. You need to find an attorney who feels qualified in the area and one in whom you have confidence. After all, you WILL be paying for that attorney's advice on an hourly basis which will increase the amount of money you are out so, only do it, if you have reason to believe that you might be able to make at least a partial recovery.

To find an attorney, ask all of your friends, family and colleagues about real estate attorneys they have used; call local real estate agents and agencies and ask for suggestions; call your State Bar Association and ask for names of those in the real estate section - then on Monday, start making calls to law offices. Explain the situation - that you bought at a foreclosure auction without understanding that it was only for the junior lienholder position. They will most likely be able to tell you right away IF they would be interested in such a case.

In the meantime, document EVERYTHING from the advertisements for the auction through the paperwork you signed and payments you made to take to the attorney. Most importantly, I understand your frustration and that you are simply venting here BUT you need to tone down your rhetoric since no one is going to want to get involved with a hothead.

Cool down, take a deep breath and realize that the outcome of this poor situation may very well depend on how you approach it. Perhaps there may be something that can be done OR maybe not. In any event going off on those who might be able to help you is counter-productive so approach it in a business-like fashion. After all, that was what the foreclosure auction was about - just business; nothing more and nothing less.

Just sorry you got caught up in a situation that you should never have participated in - hopefully there will be a remedy of sorts. Let us know....

Don't know if you're still around, Bennut. I apologize, if this sounds like 20/20 hindsight. Some of the info below may apply to others in cyberspace, instead of you.

IME, auction purchasers take properties subject to all liens and encumbrances. That's why, if a potential auction purchaser hasn't pulled a title report, including a date-down to the most current day possible prior to the sale, he/she shouldn't place a bid, IMHO.

WRT your situation, you should schedule a consultation with a competent RE attorney. Be sure to take any and all documents with you. If you check with your local bar association, you'll probably discover that many attorneys offer a free and/or low cost initial consultation. Remember, however, that it's still true that you (usually) get what you pay for. (Except for all of our sage wisdom here on the mb, right, everyone?? lol)

OTOH, I've seen auction documents from many areas. Sorry but, I'd be surprised, if the auctioneer didn't include some stern warnings in their materials. Again, if/when you see an attorney, take absolutely everything with you for his/her review.

All, JMHO.

Good Luck!

OP. Please post back and let us know what actions you have taken and whether or not you might get at least a partial relief. Bottom line, even though you purchased a junior lienholder's right, you still have a possibility of making some sort of recovery as you probably know by now - if you have consulted with a qualified real estate attorney? Have you? Let us know - wishing you the best.