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0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW Since You Asked: Pedestrians can be cited for carelessness ... Wolf once believed to be dead shows up near Crater Lake ... One of Oregon's two health insurance co-ops says it will shut down ... Since You Asked: Pedestrians can be cited for carelessness ... Wolf once believed to be dead shows up near Crater Lake ... One of Oregon's two health insurance co-ops says it will shut down ... SINCE YOU ASKED Since You Asked: When it comes to foreclosures, the bank wins Comment MailTribune.com Writer Posted Sep. 15, 2015 at 12:01 AM Posted Sep. 15, 2015 at 12:01 AM » Social News There is a what I can only describe as a fixer-upper house on my street that sat empty for about five years that now appears to be on the market. Although there are no "For Sale" signs on the lawn, there is a steady stream of people stopping to take a look at the house. I looked at the county online property records page and it appears the bank that owns the property paid $304,000 at the sheriff's auction for a property that previously sold for $225,0000. That seems way too much, considering the well-maintained house next door sold for $289,000 four months ago. Can you shed some light on this apparent oddity? — Larry B., Medford There's no perfect solution for this quandary, but it appears you're watching a tax write-off in action. Like some other "zombie foreclosure" properties described in past Mail Tribune stories, lenders were able to collect mortgage insurance payouts for several years while houses sat empty and deteriorated in one way or another from neglect. We're told by real estate industry insiders that lenders protect their interests by paying property taxes and home owners insurance premiums. Lenders set the price, hoping to either attract bids higher than what was owed or putting themselves in the position to create a tax loss. If no one bids the prescribed amount, the lender pays documentary fees, and the bank is given right over the property with a certificate of sale. However, the bank didn't "win" anything, even though it appeared to pay only $100 for the certificate. The property may be worth closer to $100,000 compared to the unpaid mortgage debt of $300,000. As a result, the bank can write off the $200,000 difference. In the end, the bank can collect on mortgage insurance, write off the uncollected debt, and then sell the house to offset its taxes and property insurance. From Sept. 1-10, there were 11 scheduled sheriff's sales in Jackson County. Only one of the properties was sold to a third party. The creditor/bank obtained the property in eight cases, while two sales were cancelled. Of the 15 originally scheduled in the second half of September, two have been postponed, one cancelled and a fourth was sold outright. Send questions to “Since You Asked,” Mail Tribune Newsroom, P.O. Box 1108, Medford, OR 97501; by fax to 541-776-4376; or by email to [email protected] . To see a collection of columns, go to mailtribune.com/youasked . We’re sorry, but the volume of questions received prevents us from answering all of them. MailTribune.com Writer Posted Sep. 15, 2015 at 12:01 AM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... Business Name address Location, ST | website.com Find Southern Oregon Attractions Bars Restaurants Beauty Salons Entertainment Doctors Medical Specialists Contractors Education Lawn Services Lawyers Shopping Travel Tanning Used Cars Wedding Services ▼ Add your business here + Events Calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2015 Local Media Group, Inc. All Rights Reserved. Privacy Policy | Terms of Service | Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. MailTribune.com | P.O. Box 1108, Medford, OR 97501