Our House Was A Repo: Part 2

September 2, 2010

We last left off with the realization that I was mentally packing my bags and moving into this house all the while finding out that I couldn’t just sign on the dotted line.

Well, here’s how the repo situation works.

Someone (the current homeowner) doesn’t pay their mortgage for many months.  Well, if they had an FHA loan (typically what a first-time home buyer has), HUD pays off their loan to the bank and takes possession of the home.  No bueno for the homeowner (a lesson in paying your bills, y’all!).

The homeowner vacates after the sheriff serves them papers.  In our case this involved stripping the home of every item of value (appliances, etc.) and then having a rave party to celebrate their new credit issues and homelessness.

After the homeowner vacates there’s a period of time where the house just sits idle waiting for the powers that be to go through the paper work. 

Then they list the house.  But it’s not an ordinary listing.

Usually the bank (or HUD) will try to get at least what was left to be paid on it and sometimes they even try to resell it for market value.  In our case they just listed it for what was left on the previous loan–hence the $40,000 price tag.

Now, our home is worth about $85,000 (we’re in the process of refinancing and I’ll have better info on that after our appraisal), so the $40,000 price tag was beyond appealing.

When you want to show interest on a repossessed home, you have to put in a bid.  That’s right–the house essentially is put on a silent auction of sorts and is presented to the highest bidder.

With this house being a HUD repossession, HUD stated that their preference was for an owner occupant to purchase the house (i.e. they wanted the owner to live  there if possible instead of selling to a house flipper or it becoming a rental).  If you remember, you already know that I was mentally packing all of my belongings and moving into this house, so we checked the “owner occupant” box on our bid.

I expressed to Mr. Windows that this house somehow grabbed a hold of my heart and there was no way we could lose this bid.  He told me that I’m a crazy old bat and I should just keep my emotions to myself.  Then something sparked in him and he decided that living anywhere else didn’t work for him either.

So, we placed our bid for $41,250.  We were trying to be creative and competitive, but not go overboard because who wants to pay more than they have to, right?!

And then we waited.

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3 Responses to “Our House Was A Repo: Part 2”

  1. Tina Says:

    Ouch! We lost our home early this year.. but mostly due to having to spend mortgage money to defend ourselves on bogus charges brought on by my husband’s highly unstable ex-wife. (And b/c we spent thousands trying to get custody of his daughter.. don’t even get me STARTED on the court system’s bias against the father.. even in the presence of crystal clear evidence that he was, indeed, the better parent with a tighter bond with the child. GRRR!) We just couldn’t catch up in time after all that. 😦 Now that my husband has a job that tripled our income and has us digging out of our giant hole (several months too late to save our home) we just figured that house wasn’t meant to be our forever home! lol! Oh well…at least we’re in a house the ex never lived in! Fresh start!

  2. LauraLou Says:

    Hey you! I left you something on my *new* blog! Let’s get together soon!

    http://theluckiestinlove.blogspot.com/2010/09/blog-with-substance.html


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