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Quick cash. Selling at auction means guaranteed money in a matter of days. When the house is sold on the market, it can take months to sell it. In those months
by systemtest 7y ago
Quick cash. Selling at auction means guaranteed money in a matter of days. When the house is sold on the market, it can take months to sell it. In those months the bank is losing money as it's tied up in the house and not actively generating revenue. If the home owner has a mortgage of 50% against the home, it only has to sell for 50% market rate for the bank to recoup their investment fully.
- ianai 7y agoForeclosed homes are also sold as-is. The process stinks. In the case of ARM mortgages, the bank often goes through this because a balloon payment comes due. The bank essentially moves from a situation of getting money on their investment to getting nothing simply by forcing people from the home. It’d be better for everyone if the parties involved just renegotiated the deal to keep people in the house and paying their mortgage.
- deleted 7y ago[deleted]