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SmokeU · Jan 14, 2008, 01:39 PM

Hello,

My brother's house went up for auction and no one bid so it was sold to the bank for $100 (I'm assuming if someone bid then the bank would have raised the bid). My wife and I are interested in buying the property but we don't have the time to get the mortgage lined up by the time it needs to be (before they put it on the market).

I contacted the agent who will be representing the bank and he knew what kind/color of car I drove! He said they had the house under surveillance but then told me he was kidding. I figured he may have driving by while I was there. He also warned me not to take anything that belongs to the house or my brother will face legal issues. I told him I wouldn't although I have thought about removing the stainless steel appliances and replacing them with cheaper versions and selling to profit from the difference. I also want to take the custom kitchen cabinets and replace them with cheaper ones as well. Am I able to do that?

my other question is my wife has tried to contact the lawyers involved and the bank and they have said that they can't speak to her unless my brother sends a signed note saying that it is OK for them to talk to her. Am I wasting my time with trying to contact the bank to make a deal? Will we even be able to work out a deal with them rather than trying to go through the selling agent?

The selling agent told me that anyone related to my brother will have to pay what's owed. If someone who is not related to my brother offers less will the bank take it?

they plan to have the house appraised and then put it on the market starting at the appraised value. Will I be able to offer less then even though I am related to my brother? Is apprased value usually much less then a normal asking price?

any and all information is greatly appreciated.

Thanks!

life1973happened · Jan 14, 2008, 03:58 PM

Good afternoon...
What happened to your brothers house is very common in the market we are in now. To answer your first question, you are absolutely not allowed to exchanged the appliances. Legally your brother does not own the property anymore. By entering the property taking anything, exchanging anything out, or doing anything is not just breaking an entering but stealing, depending on what you do. You cannot enter the property, you have to be careful as you will be breaking the law.

I know it's hard to see the house and watch it's value drop or to see whatever work your brother did to the house be valued less. However, there is nothing that your family can do once the bank has bought it back. They now own that house and property.

To answer your second question; the bank is not interested in making a deal at this point. They are a business and they put the money into the home to fix it back up to be able to sell for a higher value. They also pay all the costs associated with the sale of the house. Not to mention all the back payments, taxes, interest and insurance owed on the house, before the sale, they swallow. The bank's intention is to sell the house and lose as little as possible in the process. If they can make a sizable profit they will. It helps to offset the properties that don't.

I really hate to deliver this news but these are the facts. If you have further questions I'll do my best, as will others, to answer them.

I'm sorry about your brother losing his home. I know the conditions of the market and the economy have hurt many families, yours included, and I'm sorry for that.

Fr_Chuck · Jan 14, 2008, 04:25 PM

Don't take the stainless, they do a pre foreclosure inspection, they will know if you change anything out.

Each bank and a real estate company or broker that works for the bank, you will need to talk to them after all the legal process is over.

SmokeU · Jan 14, 2008, 04:47 PM

Thank you for the responses gentlemen. After reading them I have decided not to try to take anything but my personal property that is still in the house.

I read online that any appliances that can be removed without damaging the house and still keep the house livable (ex: washer dryer) could be removed. I guess that those sources were incorrect.

My brother refinished the entire house including an all new kitchen. Are the appliances that he bought his? No one from the bank has been in the house to inspect or anything.

I guess I will just try to buy it once it is on the market.

Thanks

froggy7 · Jan 14, 2008, 08:36 PM

Actually, I am not even sure that your "personal property" that is still in the house is still yours. If the house has been foreclosed on and the auction held, why didn't you get your stuff out prior to the auction? Right now, it might be seen as stealing even if it is your stuff and not your brother's.

SmokeU · Jan 15, 2008, 10:34 AM

Actually all personal property that does not belong to the house can be taken until they come to lock the doors and remove by brother from the house. You think the bank wants trash bags filled with my clothes?

life1973happened · Jan 15, 2008, 10:41 AM

You stated the sale already took place, which means the back now owns that home.

What state are you in that allows you to enter the house and take anything? I have never heard of this being allowed after the sale of a home as the property now belongs to the bank.

I'm just curious. If they allow you to do that, I would take advantage of it, I'm just surprised.

SmokeU · Jan 15, 2008, 12:40 PM

I am located in NJ and they haven't taken possession of the house yet. The realtor has been in touch with my brother and let him know not to worry about getting his stuff out until sometime next week. I've gone there and gotten the majority of my stuff out (the important stuff) but there are some odds and ends that I will get tonight when I get home.

ScottGem · Jan 15, 2008, 01:23 PM

Ok, so while the bank has foreclosed, they have not evicted your brother yet. So you can take your personal property. However any improvements made to the house and that included appliances, belong to the house and therefore the bank.

Its too bad you didn't do this BEFORE the foreclosure. You might have been able to buy the house from your brother just for what the mortgage balance was. You might have even got it just for the arrears. You pay the arrears and your brother assigns the mortgage to you. Now you have to buy the house like anyone else.

Cvillecpm · Jan 15, 2008, 01:25 PM

Get all of your stuff out ASAP as the bank has ownership/possession and the locks can be changed anytime.

life1973happened · Jan 15, 2008, 02:16 PM

I'm sorry to inflict common sense in to the equation here but I am blown away by the ideas that a realtor is giving you.

First, your brother no longer owns that home, nor id he legally supposed to take anything out of the house. Unless, now please hear me. Unless the lender (bank) allows him to do so. And quite honestly since I rarely see them doing that, to protect yourself you should get that in writing. In case they later come back and decide otherwise.

Second, the lender (bank) is already using a realtor is your first clue that they are moving forward. A realtor is not who you need to get permission from to do anything. Their sole job is to prepare the house to go on the market. End of story my friend.

ScottGem is quite correct in his words about doing this before the house was bought by the bank. However, since that has come and gone, you have to take another route.

It's ultimately up to you to decide what course of action you decide to take here, our jobs are just to inform and help in anyway we can. I strongly feel you need to contact the bank and get permission in writing to not just enter the property but to also take personal items.

Cvillecpm, that is absolutely absurd that you would advice him to go into that house and just take all of his stuff out now. Any way you guys slice it he, nor his brother own this home. The arrangements to take out anything need to be made with the lender (bank)

Besides, why wouldn't you want to do that to protect yourself. Don't be one of those people that say, 'if I had only known' while standing in front of a judge.

SmokeU · Jan 15, 2008, 02:45 PM

Thank you for all of your input. I wish my brother had been more open with me about what state his finances were in. I knew he was in trouble but not enough to lose his house. My wife and I bought a property down the street from him for less but at the time I saw this coming and offered to buy it from him. He could have sold it to us but he thought he was going to be able to pull it off. Instead of being proactive about it, he buried his head in the sand and now the bank owns his house (not my personal belongings). Both the bank and the realtor representing the bank have told him that he has some time before they take possession. All of his furniture is still in there but not for long.

Thank you all for your input.