My friend Jonathan Wilcox has had the listing for 24 Mahr Avenue for a long time but no one wanted it. Today there was a foreclosure auction and I hear that all sorts of buyers appeared, all with certified checks, but the lender, faced with direct evidence of what the market was willing and able to pay, rejected all bids and bought it back for itself at the amount it was owed. So now it’s a bank-owned property and will eventually sell for far less than the loan, but that’s probably a year away.
Maybe there’s a legal reason for paying in the amount owed, although I am unaware of it. My suspicion is that lenders are still operating under old rules of procedure, where houses were worth more, not less than the amount owed. Either way, what a waste of time for everyone involved. Short sales are maybe, sometimes worth the effort, and bank-owned properties (REOs) are worth pursuing, but foreclosure auctions? Forget it.