Buying property at an auction in Ca.

[JMPRO]

Does anyone know anything about this process. I found a piece of property I am interested in and it goes on the block later this month but I know nothing about this process and can't find much info on the net . If you have first hand knowledge about the California process please enlighten me. I am not interested in a "bargain", I am just interested in buying the property at a fair price. Are there any Realtors that specialize in representing buyers at an auction.

JMPRO

[Steve Viegas]

If you are not looking for a bargain, you may want to try a different route. Your county should have records of who owns the property and you can then contact them directly to see if you can purchase the property.

If you wait until it goes to auction, then you will likely have to wait. Often times properties do not make it to auction the first few times they are scheduled, likely do to the involved parties trying to work it out. Perhaps through a process similar to what I metioned above.

If you go to auction you should be ready to pay cash.

[BIGW]

I have a bit of experience in this. PM me for a contact so we can discuss.

[chocolatelab]

you dont need anyone to rep you. Go on the date for auction and have CASHiers checks for the amount listed plus more. Get ready to be patient as the property can very well get delayed the morning of auction for later date. Dont fall in love with it or else you may end up paying more than you want. the auctions have gotten more and more gritty the past few months. Margins are getting slim. Show up in the morning and let the auction lady/man know you are there and that you have cash. Pay attention it goes crazy fast! you could miss your property if you blink. There are pros there so just sit tight be patient and bid slowly, dont blow your " wad" thinking you can scare someone.

I would go to the auction sometime before hand with a comfy chair and watch how it unfolds. Do that a couple times and you will be more than prepared for weirdness you will see.

And trust me you will come home after your dry run saying......WTF just happened

[Eric Coffey]

Originally Posted by JMPRO

Does anyone know anything about this process. I found a piece of property I am interested in and it goes on the block later this month but I know nothing about this process and can't find much info on the net .
JMPRO

Probably best to first clarify what type of auction you are referring to. Are you talking about a "public auction" (REDC, etc.) where lender-owned homes are offered up at a big convention-like setting? Or, are you talking about a foreclosure/trustee sale/auction (at the courthouse or trustee's office)? Rules, terms, and barriers can vary greatly between the two.

[Bill Douglas]

Originally Posted by chocolatelab

you dont need anyone to rep you. Go on the date for auction and have CASHiers checks for the amount listed plus more. Get ready to be patient as the property can very well get delayed the morning of auction for later date. Dont fall in love with it or else you may end up paying more than you want. the auctions have gotten more and more gritty the past few months. Margins are getting slim. Show up in the morning and let the auction lady/man know you are there and that you have cash. Pay attention it goes crazy fast! you could miss your property if you blink. There are pros there so just sit tight be patient and bid slowly, dont blow your " wad" thinking you can scare someone.

I would go to the auction sometime before hand with a comfy chair and watch how it unfolds. Do that a couple times and you will be more than prepared for weirdness you will see.

And trust me you will come home after your dry run saying......WTF just happened

This is good advice.

[Laneco]

Make sure you are buying the property and not the 2nd or 3rd on the property... I read an article in the paper a while back about a person who had paid $20,000 for the second, on a property that was worth less than what was owed on the first. So that person gave $20,000 away.

Please be VERY careful.

angela

[rnln]

PM you.

Originally Posted by JMPRO

Does anyone know anything about this process. I found a piece of property I am interested in and it goes on the block later this month but I know nothing about this process and can't find much info on the net . If you have first hand knowledge about the California process please enlighten me. I am not interested in a "bargain", I am just interested in buying the property at a fair price. Are there any Realtors that specialize in representing buyers at an auction.

JMPRO

[JMPRO]

I did go to a trustees auction last week as a dry run to see what happens. To describe the auction process as informal is an understatement{ it is almost a joke} The auction is set in front of the courthouse in Santa Ana Ca. The auctioneer sets up in one of the noisest places he can find, under the front entrance that is a concrete cavern and just steps away from one of the busiest streets in town. The auction is held at 12 noon and the entire people content of the courthouse is walking behind you down this concrete cavern and making so much noise it is almost impossible to hear the auctioneer. I am hearing impaired to began with so this whole thing with the buses going by and the people walking behind you and yelling and chatting makes it impossible for me to attend one of these auctions by myself to do any serious bidding. This why I asked if anyone knew of any Realtors that specialized in the auction stuff. I am now pretty sure I won't be able to buy this property at a "Reasonable" price after further research has revealed that some idiot appraiser had appraised this house, either because of stupidity or fraud , at a ridiculeously high amount and now the trustees think this is what the house is worth. The listing shows a balance against the house at $745,000, the comps no matter how you shuffle them shows the place to be worth $350,000 in todays market. My budget will allow up to $400k but no more.

JMPRO

[jkarolyi]

The starting bid is usually the amount owed on the first mortgage, and has nothing to do with actual value. I've rarely seen a trustee list a property on a courthouse steps auction below the amount owed, but it does happen.

The trick is to find a place that has a low first mortgage (bought before the boom) but has a large second on it. You can buy it on the courthouse steps for the first mortgage amount.

And yes, be sure you are bidding on the first mortgage. This isn't as easy to determine as you might think.

[JMPRO]

I got some good info here. Thanks to you all and especialy to the ones that pm'd me with additional info.

JMPRO

[Eric Coffey]

Originally Posted by jkarolyi

The starting bid is usually the amount owed on the first mortgage, and has nothing to do with actual value. I've rarely seen a trustee list a property on a courthouse steps auction below the amount owed, but it does happen.

The trick is to find a place that has a low first mortgage (bought before the boom) but has a large second on it. You can buy it on the courthouse steps for the first mortgage amount.

And yes, be sure you are bidding on the first mortgage. This isn't as easy to determine as you might think.

Yep, but day-of-auction (and sometimes last-minute) "drop bids" are becoming common place (at least here), so if you are looking at a list of properties the minimum bid listed may in fact be lower on day-of-auction. JK brings up a great point regarding which lien-holder is actually foreclosing. Make sure you do your homework, and verify that you are not bidding up a second mortgage foreclosure! Also a good idea to call the trustee in the morning to verify the home you are tracking is still on the list for that day. Several trustee co's even have quasi-realtime online database's that you can use to track upcoming/day-of/sold stats. Trustee-sale dates are routinely cancelled/re-scheduled/extended, so it's worth a quick check to save a potentially wasted drive to the courthouse/trustee office. Good luck.