Foreclosure Sale
I'm interested in attending a courthouse foreclosure auction and I was wondering if properties really sale below fmv and what type of lender should you use. Anyone with information please help!
I'm interested in attending a courthouse foreclosure auction and I was wondering if properties really sale below fmv and what type of lender should you use. Anyone with information please help!
Yes they do go for below fair market value. The lender usually/may will bid up to the deficiency amount. There are no lenders. THis is where the big boys play and it is an all cash game.
Many jurisdictions require funding by days end of the auction. Check your courthouse for the particulars in your area. I have heard of an area that was 10k up front and the rest in 3 weeks or lose your deposit.
good luck!
PS I suggest you go to a couple and get hte feel of it first! Take notes!
And when you think your ready to bid write in blood what your best offer is going to be and don't go over it in the heat of the moment. THis is crucial!
[addsig]
In Illinois, courthouse sales require a 10-25% deposit just to place a bid, which they will sometimes check prior to holding the sale itself. The deposit must be in the form of a cashier's check in your own name so basically it is as good as cash.
If you win the bidding, you then owe the remainder of the total amount you bid up to within 24 hrs, in the form of a second cashier's check., in which you give to a 'trustee' etc. and he issues you a temporary deed.
Basically a deed in leiu of the sale. The property only actually becomes yours when 30 days have passed and a court approves the sale. Then you have to wait an additional 30 days (technically) to take possession, especially if the property is occupied by the previous owners.
Eviction can be hell.....
The thrill of the game of auctions is what lures so many to the courthouse steps, but the game is extremely risky...and requires hours and hours of work, much less a huge amount of cash that could much more easily be applied to investing in RE in other more significantly safer methods. Be careful!!