Property Details:

    • Principal Deed of trust transferred from Bank of America to a third party debt collector.
    • Amount in arrears $10,000.
    • Amount owed on principal $65,000.

    Debt collection company is auctioning this property which in addition to the principal still owed has the following issues:

    • 3 Deeds of trust totaling $850,000 (far more than the property was ever worth) held by bail bond companies.
    • 3 liens from the county totaling $100,000.
    • The primary structure was gutted by a fire and declared unsafe by the county. The house is boarded up.
    • The county just cleaned up the property hauling off cars, a burned down RV, and many more items. Two boats and a large fifth wheel trailer remain.
    • The property was inhabited by squatters and possibly still is.
    • The squatters dumped their RV waste tanks into holes they dug in the ground because the septic system was either too far away or failed.
    • Current owner is a complete nutcase (hence the bail bond liens).

    Basically, this property is about as undesirable as it gets. The cost to rehab the property is almost certainly as great or greater than the amount owed. The lot is .29 acres and faces a busy road. The only thing that it has going for it is that there is a much larger lot next to it that was originally split off from this lot and purchased by someone else. Together they are about 1.5 acres.

    I'm curious if anyone can share their knowledge or experience on what might happen to this property at auction and afterwards?

    • Will the sale amount satisfy the existing liens?
    • How does the buyer deal with the squatters if they are still there after the sale?
    • What happens if no one bids at auction?

    Why I am asking: I have to see the property every time I leave my neighborhood and it's a massive eyesore. I'd love for something productive to happen to the property and I don't want to have it sit and continue to be an eyesore and nuisance. I have no interest in developing it, but I would be willing to bid just have some control over what happens next.

    What happens to a foreclosure property like this in Washington State?
    byu/1984K10 inRealEstate



    Posted by 1984K10

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