With respect to Auctions, there are the Trustee's Sale Auctions on the courthouse steps. These auctions are all cash on the spot only. There are no guarantees of good title, there is no title insurance and there are absolutely no refunds and no opportunity to even insect the property.
Also all you get is the interest of the lender that foreclosed. That may also be a lender in second or third position behind a first mortgage that is far more than the fair morket value of the property.
The auctioneer will not tell you whether the interest that you are buying is a lien in first, second or third position and in most cases the auctioneer does not even know.
I do not recommend Trustee's Sales for anyone who does not already have years of experience with Trustee's Sales. Most of the inexperienced buyers at Trustee's sales lose their money because they do not understand what it is that they are buying.
There are also auctions of properties that were listed for sale on the Multiple Listing Service but did not sell for a variety of reasons. In most cases the reason the property did not sell is because there is something seriously wrong with the property and the property was not sufficiently discounted to compensate for the defects of the property.
Often at these auctions there is a reserve requirement that the seller will not sell the property to the winning bidder below a certain amount which is often equal to or greater than the list price where the property did not sell the first time.
At those auctions the seller is hoping for an unsophisticated buyer who does not really know the real estate market and pays too much, thinking that he is getting a great deal because this is an auction. If the bids do not go high enough the seller reserves the right to refuse to honor the winning bid if the winning bid is below a certain amount which is often ore than the Fair Market Value of the property.
with respect to REO sales, those are listed on the multiple listing service along with the regular sales and short sales. Most of us represent our clients on REO sales, regular sales and short sales depending on where we can get the best price and terms for our client.
Often REO sales are not the best deal for your client. REO properties often have significant amounts of deferred maintenance. The lenders are often unwilling to discount the REO property sufficiently to compensate for all of the deferred maintenance. Often, a regular sale in good condition is a better deal than a REO property or short sale property because with a regular sale in good condition, you do not have all of the deferred maintenance to repair.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: charlesbutterfieldbkr2yahoo.com
I would recommend my colleague Jerry Straks. He works with investors and attends the auctions frequently. You can contact him at firstname.lastname@example.org or call him at (510) 789-8936 and tell him Ashley Carrillo referred you.
BUYER CASH REBATE 55%
Dr. Ken Kapur Broker Owner, Realtor
Please call 408-691-4469 or email
488 Blossom Hill Rd. Suite B
San Jose, CA 95123
DRE 01491944 NMLS 340990
Direct: (408) 228-7867
FAX: (408) 273-6975