Foreclosure in 28277>Question Details

SB, Home Buyer in 28277

Home for Auction

Asked by SB, 28277 Sun Dec 19, 2010

We recently learned that a home we had been interested is in foreclosure and will soon be going up for auction. How do we go about getting information on the home and the auction process?

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6
There are a number of ways to find out the specifics about the status of this home, Currently, there are a number of properties that are scheduled for auction that are not on the MLS for a wide number of reasons. If a home is in an auction status, it can often be an incredible deal, but auction homes are handled differently from traditional real estate ventures and there are caveats of which you need to be aware. It is essential you work with a realtor experienced in distressed properties - and in particular auction homes in this instance - to protect your interests. Give me a call.
0 votes Thank Flag Link Mon Dec 20, 2010
A foreclosure auction is done at the county courthouse steps. Here's the deal........you have to go down there and look at the auction postings to see when the house you are interested in is being auctioned. Most people that go to these auctions have learned how to do their homework ahead of time by making sure there is no cloud on the title or any tax or other liens on the property that they would inherit if they won the bid. If you are the winning bid, I believe you have to put at least 5% down right then and there to hold it. It's not over yet....then there is a 10 day period where someone can come in and up your winning bid but this time at has to be in 5% increments. If someone does come in and up it 5%, then the 10 days start all over. Once 10 days have passed, and there are no more bids, then the winning bidder must come down and pay the balance in full (no financing). So you see........ti's mostly investors with cash that do this. However, very often it's the bank (1st position lien holder) that wins the final bid, because if the prior bid wasn't enough to please the bank, then they feel they could do better by getting the house back and selling it themselves. Which means it's a good chance you will see it back on the market again as a bank owned home.
Let me know if there is something else I can help you with or if there was something you didn't quite understand.
0 votes Thank Flag Link Sun Dec 19, 2010
I would continue to negotiate with the owner to see if you can agree to a sale price that will be accepted by the bank. The owner may still have several options to stop the sale and the bank may allow a bonafide offer to stand. If you still have an interest in this property contact your realtor and make every attempt to continue the negotiation.
0 votes Thank Flag Link Sun Dec 19, 2010
Hi SB

It is prudent to wait till it shows up on the MLS.
However, if you are still interested in the home Call Erin or Mathew below, or a title company.
From the title company, Find out who is the bank and the asset manager, then get some details , or call the Foreclosure court to Get a schedule.

It's very risky to buy at auction as there can be a few hidden liens, that you may not know
About and land up paying for.


Good luck.
Perry
0 votes Thank Flag Link Sun Dec 19, 2010
Unless you have a reason to suspect that there will be others beside the lienholder placing a bid at the foreclosure auction, your best bet will be to wait and allow the bank to win it at foreclosure auction and then let them list it and you make an offer at a further discount. We work with a lot of distressed properties. Years ago, when the market was very different I spent a lot of time at the court house making those bids, but these days they are very rare.

Please feel free to call if you want to discuss further.

Thanks,
Matthew Tringali
Owner of Group 15 Real Estate
704.517.3906
matthew@group15realestate.com
0 votes Thank Flag Link Sun Dec 19, 2010
Often times the home is still listed in MLS. What is the address of the property?
0 votes Thank Flag Link Sun Dec 19, 2010
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