Foreclosure Auctions and Investor Representation. By Erik Wesoloski. What we will discuss today. History of the Online Foreclosure Auction System Pros and Cons of the Online Foreclosure Auction System Risks of Buying at Auction
By Erik Wesoloski
Allowed many unsophisticated investors to risk their money with one click of the mouse
People bidding from Panama, NYC, IPhones
When can a foreclosure sale be reversed?
Two Prong Test from Arlt v. Buchanan, 190 So. 2d 575 (1966), established the doctrine that the foreclosure sale must have had (1) an inadequacy of price and (2) an irregularity at the sale.
“The general rule is, of course, that standing alone mere inadequacy of price is not a ground for setting aside a judicial sale. But where the inadequacy is gross and is shown to result from any mistake, accident, surprise, fraud, misconduct or irregularity upon the part of either the purchaser or other person connected with the sale, with resulting injustice to the complaining party, equity will act to prevent the wrong result.”
There are approximately 400,000 open foreclosure cases across the State of Florida
There are approximately 400,000 more mortgages that are delinquent but not in foreclosure yet
These numbers translate to a 3 to 5 years supply of foreclosure auctions so there is plenty of work to still do in this space