Foreclosure in 92024>Question Details

Buyer At Auc…, Home Buyer in 92024

who will represent me in the purchase of a trustee auction sale of a home in san diego county?

Asked by Buyer At Auction, 92024 Wed Mar 14, 2012

it is my understanding that residential realtors do not do this kind of transaction, right? i wud like a professional who knows how to navigate this process, maybe an attorney, or whomever is generally used to represent the buyer in this process.

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Generally agents don't want to take on the liability. There are many risks involved in purchasing at the court steps. You can hire anyone to make the purchase for you. You simply have to send someone you trust, to the court steps, with cashiers checks, in an envelope. You can communicate with them on the phone, while the bidding is taking place. Once you've made the purchase, the property is yours. Sometimes you will come out ahead, and at other times, it may cost you more than a non-foreclosure property, by the time you fix it up. What if the owner of the property, that is being foreclosed on, comes over and turns on a faucet or two, in the house, the night before the auction? I've personally seen some homes that have been torn apart inside. As a Realtor with a builder back ground, I considered helping an investor acquire homes this way. I did a few dry runs. I would drive all over San Diego, to see the properties, estimate repairs, and stand on the court steps to learn, and observe. More often than not, the property of interest didn't come up for sale, the day they said it would. The sale date is often postponed. I also found that properties under $500,000 were of interest to too many bidders. The price would be driven up to near retail. There are deals to be had, but not without risk.
0 votes Thank Flag Link Wed Sep 18, 2013
Generally Realtors do not represent buyers buying at trustee sale auctions as there is no commission paid by the seller. Buyers are on their own at these auctions and they are very risky and one should be very experienced in real estate if they plan to buy at a trustee sale.
0 votes Thank Flag Link Wed Sep 11, 2013
I wrote a blog about "Finding Foreclosed Homes on Trulia" just last week. I'll put a link in the web reference. That should answer all of your questions.

J.R. Thrasher
0 votes Thank Flag Link Wed Sep 11, 2013
if you want representation at a trustees sale you will need to pay an agent from your pocket.

the trustees/auctioneers are paid fees by the TD beneficiary and do not offer commissions to persons who are represented by agents. the agent will not be the will.

as the prior responses state, you will need cashiers checks for this sale and will be expected to show them to the auctioneer before they permit you to enter a bid on a property. i advise attending a few auctions as an observer before you jump in with cash.

be sure you understand the lien profile before you buy and understand that you will NOT be receiving a policy of title insurance and will unlikely be able to obtain one until you resell on an arms length basis.

this is NOT for the novice
0 votes Thank Flag Link Sun Jul 14, 2013
You should be VERY, VERY careful about this. Please understand when you buy these at the courthouse steps, along with issues of liens, value, cash required, etc., you do not get to view or inspect the home prior to purchase. You get it warts and all and you can have many surprises at the end (even tenants living in the property) and is usually not for the faint of heart. Homes that have upside potential are scooped up by the pros waiting there who have cash on hand and can afford to deal with the occasional money pit that they eventually own. It is part of their business model and they have the resources and team to deal with most issues much less expensively than the rest of us. I have experience in this and would caution you to know the risks before you move forward. Good luck!
0 votes Thank Flag Link Sun Jul 14, 2013
I recommend contacting an agent with Foreclosure experience, based on my experience at RealtyTrac.

I do not recommend purchasing a home from a Trustee Auction because of defects there may be on the title. RealtyTrac compiles all the loan and lien information available from public records. It's one big mess. When a bank reclaims a property they clear the title before they resell it.

Furthermore, the outstanding balance on the loan is usually the opening bid, which is often higher than current market value. It is not financially logical to purchase a home from a trustee auction because of the risk associated with the title and higher than market asking price.

If it's personal, contact the lienholder (bank), find out who will list the property when it comes on the market and give them a call. Please contact an agent through RealtyTrac. If you do not want to for some reason, send me an email and I will have someone call you. David Chiles.
0 votes Thank Flag Link Thu Mar 15, 2012

There are REALTORS who can assist you with this - you may need to interview several before you find the right one.

I recommend speaking with the broker of 2 to 3 local companies and asking them to recommend 1-2 agents in their office who handle these types of transactions. In my area I know of 2 or 3 agents who have experience in handling these types of transactions.

I wish you the best of luck.

Tamara Stoebe, REALTOR, GRI, e-PRO, CHS, QSC
DRE License #01827461
Prudential Troth REALTORS
1801 W. Ave. K
Lancaster, CA 93534
Cell: (661) 466-6849
Fax: (661) 422-3006
0 votes Thank Flag Link Thu Mar 15, 2012
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