I've Found A Place....
I've found a property in CA that I'm really interested in and it goes to auction next week. I've been running around all week trying to get things in order but still have a few lingering questions.... I've heard that if I buy this property I am assuming all private debt of the previous owner (like if they filed bankcruptcy). I've done a title search but how can I find out what kind of financial distress they are in. I don't want to get stuck buying a property and then finding out someone can take my new purchase away from ME!
You didn't say what type of auction. I will assume it is a non-judicial foreclosure
(most common in CA) and not a tax sale.
Your title search should be a very good start. You are primarily interested in liens recorded against the property at the time of purchase. Once you own the property the debts of the previous owner cannot be liened on a property he/she does not own. If you are obtaining financing the existing liens will be paid off before the owner gets paid. You might try negotiating with existing lien holders prior to your purchase.
It seems to me that your major problem is to get everything done before auction. If you can't , you need to find a way to stop the auction.
You might give a little more info.
You're right in your assumption that it's a non-judicial sale.
Here are a few more questions for you!
1.) Does the minimum bid include all liens ?
2.) Does the trustee participate in the bidding process?
3.) Are all tax liens discovered with the title search? I've consulted the county assessor's office and from what I can tell the tax status is current.
4.) Say I didn't have the title search done and went to auction anyway, would I be advised before bidding of all existing liens etc...?
5.) The minimum bid has not been established according to the main auction phone-line. When will that be finalized?
6.)Does the trustee want only the money due to the bank? Meaning, if I were the only person bidding (not likely) and bid the minimum will the trustee be satisfied with that or are they looking to make a profit and/ or fair market value.
7.) If the minimum bid is 100k and the home sells for 200k where does the extra money go?
Hope this list isn't too exhausting.....if you have time, since you also live in CA please advise of what I may experience at auction.
Thank you!!!
Go to the local town hall, to the clerks office, and tell them you would like a tax statement about the property. They should print out a paper with all the info you need to know before you begin bidding.
[addsig]