The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: Kaplin261 on December 24, 2015, 04:26:38 AM
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Most information I find from google is just people peddling ebooks.
If I want to buy a foreclosure I have to have the full purchase price in hand at the time of purchase and I can't use a bank to finance?
I would love to here from someone who has did this before and can give some details of the whole process.
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I did not do this but my father did. You really need to check with the clerk of court to see who handles the auctions. Then get the information straight from the horses mouth. Different jurisdictions have different rules. Go to the source.
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A coworker bought his house at a foreclosure auction. X2 on the above comment, it will vary from state to state. I think my coworker contacted the selling bank too, in order to ask what the seller's requirements were for deposit + total payment transfer.
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For the love of God, please be certain of the priority of the mortgage that was foreclosed or you could end up like on of these poor guys that mistaken bids a lot for the property just to be foreclosed by a first mortgagee 12 months later.
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*tax-sales* actually clear all mortgages and liens. The do not erase deed restrictions or easements, however. Of course, ask before you buy but this is my general understanding.
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It varies by location, so generic information is fairly useless. Research your area.
What are you looking to do? There may be easier/better ways.
Also just go and see. Go watch, if possible (it almost always is).
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I was a "barker" for a time (the person doing the auction on the courthouse steps). My client did not allow me to even follow a buyer to the bank (many banks just a block away) and get a check. The Buyer had to have a cashiers check in hand the moment the auction concluded. For that reason, none of my auctions sold to anyone other than the entity forcing the sale (typically the primary mortgage holder).
The above advice is about right. Very few are tax sales, but tax sales do get complicated quick. In addition, there are rights of redemption in some states for tax sales. You're best bet is to have a title attorney do a title search and find out what and how many liens may affect a property prior to you bidding.
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Auctions for my county in FL are online only. Foreclosures and tax deed sales.
eGubmint fer ya!
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*tax-sales* actually clear all mortgages and liens. The do not erase deed restrictions or easements, however. Of course, ask before you buy but this is my general understanding.
Around here there are three steps, it seems:
1. Upset sale. Property remains subject to all liens.
2. Judicial sale. Property is sold free of all liens.
3. Repository sale. Property is actually owned by the county and can be bought for $100 or $1000 depending on if it's totally worthless or damn-near-worthless. There might be some gems in this list but a long chain of people has passed on these parcels.