Close

A "Cheapo" Foreclosure--Flipped It for $16,300 Profit

by Mary-VA, Salem, Virginia   
Loading social counters...

In my state, foreclosures are advertised in the "Legal Notices" section of the local newspaper, and they include the amount owed on the property.

I was caught off guard last week at the courthouse steps when the auctioneer named a property, and I did not have a copy of the legal notice for it. I usually have all the "cheapos," so I thought I was slipping when she said the bank bid $37,600.

Having no information on the property, I did not bid. Neither did anyone else, so the bank bought it.

When I came home, I started digging through my legal notices looking for the property and found it. The original amount was listed at $110,000. That explains why I had ignored it. I called the auctioneer who said it was too late to bid on it; that I should contact the foreclosure attorney.

I was puzzled with the low bid of $37,600. I thought it might be a second mortgage, and the buyer would have to pay the first mortgage also.

I called my attorney who called the foreclosing attorney and learned that $110,000 was advertised as the total owed on the property, but there was a "piggyback" loan on it held by the same bank.

The bank could legally only foreclose on the original. The "piggyback" became a second mortgage and got wiped out at foreclosure. I could have it if I would pay $37,700!

I wired the money and faxed the Memorandum of Trustee's Sale they emailed to me. I got the deed in the mail Wednesday and signed a sales contract with an investor on Thursday. I sold it for $54,000. We close at the end of the month. The investor got a good deal, as this is a level lot 130' x 309' with two "fixer-uppers" on it.

I am happy; I am lucky; and I learned something...In the future, I will not assume anything when I read the Legal Notices.

[This is Mary's second Success Story. Read her first one here: My Neighbors Just Gave Me Their House!]

 
Loading subscribe form...