What does "Sold to Beneficiary" mean?

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Latest post 01-30-2009 12:27 PM by Hearst86. 3 replies.
  • 01-29-2009 6:14 PM

    Question [=?] What does "Sold to Beneficiary" mean?

    At an Auction of Foreclosed Real Estate property. What does it mean when it is "Sold to Beneficiary"? Who is beneficiary?
  • 01-30-2009 12:41 AM In reply to

    Feedback [*=*] re: What does "Sold to Beneficiary" mean?

    More information would be needed regarding the context of the sale to really answer that. Was the property owned by a decedent estate or by a trust? If so, then a beneficiary is someone who would inherit from the estate or who is entitled to distributions from the trust.
  • 01-30-2009 9:44 AM In reply to

    re: What does "Sold to Beneficiary" mean?

    Sorry about lack of info. Thanks. From what I gather, it was property that was being foreclosed and then sold at Auction. Outcome at Auction "Sold to Beneficiary". Is the beneficiary the lender/mortgage holder?
  • 01-30-2009 12:27 PM In reply to

    Feedback [*=*] re: What does "Sold to Beneficiary" mean?

    Probably. At many of these foreclosure court house auctions, the bank sets a minimum bid that often is unrealistic for the property in question. But, at this stage of the proceedings, the bank is trying to recoup its losses and may not have any real knowledge about the property's condition. So, they figure out how much they lent, add in court costs, etc., and then say that unless the offer is at least XXX,XXX amount of dollars, we will not accept it. The fact that most bidders at these auctions must come up with the full amount wanted then and there can also be an issue, unless the bidder has the financing in place.

    Because of the minimum bid requirements, most of these properties revert to the bank after the auction. The bank then evicts the borrowers or induces them to leave with a cash for keys offer, and formally takes over the property.
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