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  • From: Gene GeRue <genegerue AT ruralize.com>
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] land prices!
  • Date: Sun, 06 Nov 2005 18:45:38 -0600


In most states when a lender forecloses on land, je can't legally just seize the land. It must be auctioned off. To prevent the land from selling to a thrid (or would it be second) party for $2K an acre and the lender being screwed, he takes possession of the land by bidding absurdly high.

Well, no. The holders of any notes against the property need only bid the aggregate amount of all notes plus expenses. The lender has no motivation to bid higher than necessary unless it is speculating on rapid appreciation, something that, I believe, lenders are precluded from doing by their charters.

Some land prices are that crazy, that's beginning to change now that the
bubble is near bursting,

This bubble tune has become boring. There is no national real estate bubble. There are local areas of over-appreciation that local market activity will adjust.






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