Forclosure Auctions?
I am a new real estate investor. I have been in the game for about 8 months now. I have purchased 2 houses so far. One is rented out and i am in the middle of rehabbing the other one. Both these houses were forclosures. My question is how do I find out information about houses that are forclosures but are up for public auction. I just found out that this was even an option. How does a public auction work. Do you need cash to buy these houses. Any information will help thanks
There are a couple of ways to find out about the properties sold at the auction. You can go to the courthouse and just ask for the foreclosure list(most time consuming of the options). Also, this info will appear in one of the local papers about a week prior to the sale(has to by law). Yet another way (best, yet most expensive) is that usually there will be a title searching company or attorney that provides specifics on all these properties(mini title searches), for a price. As far as how the auction actually works, you will need(in my area anyway) 5% - 10% of your bid ready(certified check) the day of the auction. The rest of the money will probably be due very soon after, so be ready. These auctions are usually held once a month. Hope this helps and just ask if you have any other questions.
P.S. Just because a property is for sale at the auction does not mean it is a good deal(most won't be). Pick a couple of good ones, research them well(any possible liens or encumbrances), get to the auction early(to get a good seat), and pay attention to the auctioneer. Happy Bidding! [ Edited by SirChristian on Date 01/18/2004 ]
Thanks for the help, I have a few houses to go look at. I found some on a pay web site and it gave me the auction dates and addresses. It looks like you are from SC I lived in Goose Creek for a year, at the Navy Nuclear school there. Nice place. Thanks
What was the website that you went to to find out about the auctins, if you could post the link, or PM it to me, that would be great!
Thanks in advance.
[addsig]
Here in Texas you bid and win then you pay. You may be able to talk then into waiting an hour or two but that is about it. Tax sales are good too. Various ways to make money on these. Owner has right to redeem for a certain period of time but must pay you a penaly which is 25% here in Texas
Good LUCK and Thank You
Hope this helps some
Ted Jr
I found that www.foreclosures.com had the best deals. Every property I found on that website has been under 50% FMV, when I was finished rehabbing them. They are properties that already went to Auction and where bought by the bank, but not listed publicily yet. I have experienced back luck with auctions because the Sherriffs' Dept. didn't notify everyone on a property I bought in 2001. I am still fighting to get off a lien. You just never know who is going to do their job LORI
Thanks for the link tinman. I think I will subscribe for 1 month for $79. The interesting thing about that site is that it offers news articles and allows a small charge for getting started; other sites want a bit more money. As I am usually sceptical of a pig in a poke, I like the small fee to see if it is what I am looking for.
In our area if you know the names of the auction company you can go the their web site and get a listing of all the properties they will be auctioning that month. You may also find that 3/4 of them will never make it to auction and the web site is a way to find this out although it pays to phone the auction company the morning of the auction to see itf it is still on and not be wasting your time.
tinman,
www.foreclosures.com is a website by Tim and Alexis McGee who are from the Sacramento, Ca. area. I have been thinking about getting their info off their site for some time but, quite frankly, I've heard conflicting reports on how good their listings are. Have you had good luck with them? Any feedback will be appreciated.
BTW, how's Pittsburgh? Grew up in Munhall and now live in sunny San Diego.
Dave
[addsig]
yes, i've been getting www.foreclosures.com lists for defaults and auction data for my area for quite some time. they have the most current and complete data by far. you get what you pay for.
Also, their free articles are great. check them out. I've also taken alexis' training. I'm a big fan.
Feel free to email me with ?s
PS. CA is different from other states, as each state has it's own foreclosure auction and process. You can read more at www.foreclosures.com they have a link to state laws.