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Still Doin Time
Join Date: Nov 2004
Location: Nokesville, Va.
Posts: 8,225
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Any Real Opportunities in RE Trustee Sales?
I see these all the time in my local papers. You are given little info though. What I do read is that the address, the original loan amount and the date of which the loan was taken and of course the defaullt amount. Funny thing here is that there seems to be only two firms (but seperate) that handle all the sales in the metro area.
Is there really any opportunity there at the court house steps for an investor? Or is it a dog-n-pony show only with the outcome and purchaser already decided? Any one here ever buy a home like that?
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'15 Dodge - 'Dango R/T Hauls groceries and Kinda Hauls *ss '07 Jeep SRT-8 - Hauls groceries and Hauls *ss Sold '85 Guards Red Targa - Almost finished after 17 years '95 Road King w/117ci - No time to ride, see above '77 Sportster Pro-Street Drag Bike w/93ci - Sold |
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09-25-2006, 09:10 AM
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Non Compos Mentis
Join Date: May 2001
Location: Off the grid- Almost
Posts: 10,598
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There is money to be made, but if you don't know what you're doing, you can loose your shorts.
You really need a full title report. The auction usually satisfies the first leinholder, but there may be more liens that will follow the property to the new owner. Some properties are sold "free and clear", and some are not. And the trustee doesn't usually tell you. All he cares about is his client's poition. Your best bet is to have a freind in the title business, who can look up all recorded information about houses you're interested in. If you do your homework, you can do well. |
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09-25-2006, 09:25 AM
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Registered
Join Date: Sep 2001
Location: Tucson AZ USA
Posts: 8,228
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Recently, in a public real estate auction, all but one of those properties were taken out of the auction due to agreements between lenders and owners. The one that was left was a 1,100 square foot bungalow.
Dantillas advice is well put. Caveat Emptor. You are getting into very risky territory, like buying cars at an auction. Amazing what a nice coat of wax and a steam clean can cover up. I have seen anumber of these homes to be auctioned ccompletely stripped or at least trashed.
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Bob S. former owner of a 1984 silver 944 |
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09-25-2006, 09:39 AM
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Still Doin Time
Join Date: Nov 2004
Location: Nokesville, Va.
Posts: 8,225
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So if you you 'won' the house in an auction there could be other liens pending?
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'15 Dodge - 'Dango R/T Hauls groceries and Kinda Hauls *ss '07 Jeep SRT-8 - Hauls groceries and Hauls *ss Sold '85 Guards Red Targa - Almost finished after 17 years '95 Road King w/117ci - No time to ride, see above '77 Sportster Pro-Street Drag Bike w/93ci - Sold |
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09-25-2006, 10:31 AM
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Non Compos Mentis
Join Date: May 2001
Location: Off the grid- Almost
Posts: 10,598
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There are people making good money flipping these houses.
The other big requirement is that you must have cash to pay in full. When you want to bid on a house, the trustee will ask to see proof of payment. This means a cashier's check for at least the full amount of the minimum bid. Usually bidders will bring several checks. One for the minimum bid, plus a few $10,000 or $5000 checks to give the trustee after a winning bid, to meet or exceed the final bid amount. Then you get a refund of the difference at closing. Without bringing cash, you are not allowed to bid. It's an education to attend an auction, just to see the proccess. If you've got the financing, and access to title information, it can be fun. |
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09-26-2006, 08:32 AM
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