HardlyRightHanded t1_jedi5m8 wrote on March 31, 2023 at 5:48 AM

From what I understand, on some sites the price listed is either what's still owed on the house, or the last price it sold for. It's an effort to grab your attention and likely not the price you'll be paying. Foreclosed properties are auctioned, so highest bidder gets the house.

For example, my house recently got foreclosed on. I fell ill and wasn't able to make the payments. There's nothing wrong with it. It's in great condition. The bank I had my mortgage with sent me an estimated value of 212k after inspection. However, it's listed on foreclosure sites at 156k, the price I bought it for.

If I'm not wrong, the bank knows what it's worth and will likely do all in their power to get the bid up close to the 212k price tag to get the extra 50k profit. Maybe I am wrong, but as long as they do it legally, why would they not?

Snakend t1_jee4ke4 wrote on March 31, 2023 at 10:55 AM

The bank doesn't get to keep the extra 50k profit. They have to give it to you. So they don't care if there is any profit at all. They just want to clear the loan and be done with it. Why wouldn't you sell the house before they foreclosed? The only reason to ever let the house go back to the bank is if you can't make payments AND you are upside down on the house.

HardlyRightHanded t1_jefj4th wrote on March 31, 2023 at 5:14 PM

Essentially, yes. I have an illness that makes me unable to do most things, including not being able to communicate clearly or effectively most of the time. At the time I still needed 12-16 hours of sleep a day, and was so foggy headed I couldn't make the connections I needed to be able to do that. I could barely write a response email, let alone research and reach out. It wasn't guaranteed that I was even awake at a reasonable time. My "friends" at the time were conveniently too busy and my family was all too lazy to help. I asked for help, which was about all I could do at the time, but I didn't receive it.

Yes I've made improvements now, but it's all too little too late. I can read and write better now, but it's not guaranteed on any day. I'm still disabled physically, I spend most of my time in my bed, and disability payments take years to come through. I managed to keep forbearance up for two years instead of one because of COVID, and that was after all my savings were drained.

Believe me, if it was a possibility, I would have.