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I have some questions about the procedures of buying auctioned home, like how to check for liens, encumbrances
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6 Responses to I have some questions about the procedures of buying auctioned home, like how to check for liens, encumbrances
You should always buy the house cheap enough so that you can still make money if things go bad
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First of all you are purchasing the property in a as-is condition and the bene does not plan to do anything about that situation.
The Bene will have someone there to ensure that they make the minimum bid of whatever the loan is. So if the loan on the property is 150K to include all foreclosure fees, attorney fees, recording fees and any other cost to complete the foreclosure, the lender will have someone there to bid 150K. After he bids that he probably will not bid again.
Keep in mind if the property is being sold at the foreclosure auction the person performing the auction will want to see your cash or cashiers check before he will allow you to bid on the property. So make sure you have enough cash on hand. You will not be able to bid unless the cash or cashier check is there, you can not win the bid and say you have to go get the money.
The lender will in most instances get rid of the person residing in the property now, that need not be a concern of yours.
At this point it is useless to approach the owners. You must contact them at the beginning of the foreclosure procedures but long before the lender has set a sale date or trustee sale. That is the best time to purchase a foreclosure is by contacting the owner before the property goes to sale by the lender.
The only liens you have to worry about is the one you are bidding on. The other thing you might have to bring current is the taxes, but most of the time that is included in the fees the lender had to pay out.
To check for liens on the property you can get a title company to either give you a title report or a property profile. By this lender foreclosing on the property any junior liens are wiped out unless the junior lien take over the foreclosure from the senior lien holder
I hope this has been of some use to you, good luck.
“FIGHT ON”
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The above answer just about covers the issue. With one exception ~ you must check for liens before you bid ~ anything there will become your problem. In one instance a house worth around $110,000 had almost $400,000 in liens ~
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Go to your county’s tax assessors office..You’ll be able to get the information you need..
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You should also be able to use a local title company. Some even give classes on the subject… Check it out
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My Father In Law was a broker who did this type of buying and selling for a living. He is retired now, and living very comfortably on his earnings.
From what I read of your questions, you sound like someone who has a dream, but no practical experience. If you insist on getting the experience “the hard way” by trial and error, you will most likely be disappointed. There are many people like yourself looking for a “good deal” who end up getting stuck with a mess.
Please take my advise and hire an expert to help you. I don’t want to see you end up like most people do. There are a very small minority of people who succeed, but they usually have a great deal of knowledge and experience ahead of time. There are also a small minority of people who survive a train wreck, but I would certainly not want to see if I could be the lucky one.
If it was “easy” every one would do it.
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