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Answers (4)
- Deborah Garvin, "loanmonarch"
- Contributions:438
Ginger is absolutely correct! Buying through an auction house is just slightly less risky than on the courthouse steps and you are absolutely going to pay considerably for process.
- Ginger Lightburn, "Ginger Lightburn"
- Contributions:4
I agree with the earlier responders. One note I'll add to this is make sure you read the fine print for the auction houses (I'm not talking about purchasing at the courthouse steps). There are often hidden fees you don't know about until you've "won" an auction and then they hit you with them. I've seen some add as much as 5-7% of the purchase price to your total.....plus you have all the risks these other agents have mentioned.
You are better off to go with a Realtor in your area and let them guide you through the sea of foreclosures and possibly short sales (provided you have time/patient to wait on those). Best of luck!
- Deborah Garvin, "loanmonarch"
- Contributions:438
Buying at auctions are generally a very good way to lose a lot of money. It is not the path recommended for a real estate novice. One, you cannot inspect the property. Two, there are no contingencie. Three, you take on all liens. Fours...Just why would you want to take all tha risk for none of the gain.
Partner with a local real estate professional and have someone in your corner. Best of luck to you!
Partner with a local real estate professional and have someone in your corner. Best of luck to you!
- Craig Fialkowski GRI ,CDPE, "craigfial"
- Contributions:572
Purchasing property at Auction is a Full time JOB and then some. As you mentioned there are risks.
There are rarely good deals, since the Plaintiff typically bids up to the amount of the lien. Unless you are willing over pay, chances are the Plaintiff will win.
In some very rare cases a bank's attorney may miss the auction and not bid, therefore opening up the transaction to a steal, but I have seen these cases overturned even if you win.
You are definitely looking for a needle in a haystack and there are some pretty savvy investors out there looking for the same deal.
HOA liens can be a deal if the bank has not initiated their foreclosure action yet and the property is vacant. Then you can lease it for at least 12-24 months without too much worry.
Do your homework and bid with confidence.
There are rarely good deals, since the Plaintiff typically bids up to the amount of the lien. Unless you are willing over pay, chances are the Plaintiff will win.
In some very rare cases a bank's attorney may miss the auction and not bid, therefore opening up the transaction to a steal, but I have seen these cases overturned even if you win.
You are definitely looking for a needle in a haystack and there are some pretty savvy investors out there looking for the same deal.
HOA liens can be a deal if the bank has not initiated their foreclosure action yet and the property is vacant. Then you can lease it for at least 12-24 months without too much worry.
Do your homework and bid with confidence.
Online foreclosure auctions do not seem to provide bargains. Are REOs better deals than auctions?
I've been contemplating of bidding and buying at online foreclosure auctions, such as https://www.miamidade.realforeclose.com
The best deals seem to be the HOA foreclosures, on the surface. However, the buyer is on the hook for the outstanding mortgages, which make these terrible deals.
I've been scanning through a few weeks of historical auctions and it does not seem that 3rd party bidders are getting bargains. If they are, it must be rare. What kind of discounts are others getting? Is it worth taking the risks of buying at auctions?
I found a title search company who will provide reports on auction properties (http://www.titlesearchflorida.com). This way, I know if there are outstanding mortgages, liens, etc., before bidding. Should I be using an attorney instead?
Will I need an attorney to close the deal and evict the homeowner? How long and how much will it cost to evict the homeowner?
What is the range and average cost to rehab these auction homes?
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