I am embarassed to say I cannot answer one of my first time buyer's questions about a property. I am wondering if I could get some clarification from knowledgeable REO agents on what transpires during a Sheriff sale. Names and addresses have been changed to provide confidentiality, but the financial figures as shown in the tax records are true:
Property address: 123 Main Street
03/04/97 Property is owned by Happy Owners Trust, Mrs. Happy Owner Trustee, with a mortgage of $47,450 held by Miscellaneous Mortgage Company.
04/01/05 Quit Claim Deed from Happy Owners Trust to Mr. April Fool, with new mortgage of $74,400 held by Let Us Be Your Mortgage Company.
01/13/09 Sheriff Sale to New Player Mortgage Company for $52,500
01/29/09 Judge of Ill Fated County Sheriff Deed to New Player Mortgage for $52,500
Question: What happened here? Was there a real auction sale whereby the New Player Mortgage Company actually bought something for a real dollar amount of $52,500, being it was something they already held the first mortgage lien on to begin with?
Question: Did New Player Mortgage Company have to pay a full $52,500 plus all the normal closing costs associated with an arm's length sale in the same amounts any other buyer would have had to pay?
Or.... did New Player Mortgage Company simply pay a reduced amount in order to protect their position during the Sheriff Sale auction process? What did New Player Mortgage really pay?
PS: The reference property at 123 Main Street is now Active on the MLS for $17,200. My first time home buyer wonders how a property that sold in January of this year for $52,500 is now on the market for $17,200. Can you help?
Thanks for any and all help!