Westside Premier Estates
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After you've grounded yourself in the issues and concerns of buying you'll have the knowledge to interview and find an agent that demonstrates the knowledge you're looking for. Expect explanation and when you do you'll have found who you're looking for.
Check out the link below for a disinterested discussion of foreclosures from Nolo Press.
1. Court house steps?
2. On line?
4. Public location ?
These are a few examples however you need be qualified prior going to auction know exactly what you are doing it can be expensive mistakes made.
Foreclosure investing is generally not a good investment approach for beginners. There is much to know in order to avoid the problems that can occur. If you don't know what you are doing, one disastrous foreclosure investment can wipe out your capital and your enthusiasm for home ownership in general.
There are 3 basic approaches to buying properties in foreclosure depending on the stage of the foreclosure process: buying pre-foreclosures, buying at the foreclosure auction, and buying from lender after the foreclosure sale.
REOs (lender owned after foreclosure) are the least risky way to buy foreclosures. You may have more risk than you would in a regular real estate transaction, but REOs are less risky than in buying at the foreclosure auction. Since REOs are somewhat similar to a regular sale, they can be pretty safe. The purchase will be made "as is" (no repairs) and you will not get a seller's disclosure.
The next riskiest foreclosure purchase is the pre-foreclosure. This is the current state of the property in question. A pre-foreclosure seller might be desperate and be less than candid about the condition of the property and the neighborhood. His motivation is to salvage anything he can from the property before it goes to auction.
There might be liens on the property that the seller "forgot" to mention. Any unpaid delinquent bills become the buyer's responsibility, such as taxes and utilities. There may be another person on title who did not sign the deed, and so on. In California, there are laws related to dealing with and buying a property from a homeowner occupant who is in default on a loan. Be sure to get legal advice.
If the contracts and the sale are not done according to the law, the seller has the right to rescind the sale and could, long after the sale, sue to have the sale reversed. There are extreme penalties for violating the law. Remember, "Ignorance of the law is no excuse." You need to know the state law when you buy a pre-foreclosure home.
Can the seller can legally deed the property to you? What if the seller is already in bankruptcy? And, even if the seller does not file bankruptcy until after your purchase, you may have to deed the property back to the seller up to three years after you bought it.
If selling the property made the seller destitute, and the seller sold for much below market value, the bankruptcy trustee can require you to deed the property into the bankruptcy estate on the grounds that the sale was a "fraudulent transfer," wherein the seller deprived his creditors of an asset which could help pay the debts.
A lot of pre-foreclosure buyers may forego some of the inspections because they are hurrying to buy before
the foreclosure auction. But, if you sign a proper sales contract with the owner, be sure to get appropriate inspections, go through an escrow with a knowledgeable Realtor and escrow agent, and look at the property yourself, you probably will not be at great risk. If you use the safeguards above, you are going to have less risk than in most auction sales.
Buying at the auction is the riskiest foreclosure purchase. At the auction you have no real estate agent to lead you through the process. You have no escrow and no title report let alone title insurance. In most areas, the transaction must be an all cash sale. You may have a week to a month to come up with the full purchase price, but if you do not raise the money, you lose your deposit.
At the auction the people conducting the sale will announce that the successful bidder will receive NO WARRANTY OF ANY KIND. You have no assurance that there are not other liens or loans on the property.
You do not have any inspections by contractors, roofers, pest inspectors, building inspections, or septic system experts. You get no disclosure from the seller as to the condition of the building or what is happening in the neighborhood. Usually you cannot see the inside of the building; perhaps not even the back of the outside. You know nothing about the electrical system, the plumbing, the heating, or air conditioning.
If you buy an occupied property, you have to do an eviction, which can drag out for a while. Sometimes the occupants, if they are former owners, will vandalize the properties before leaving.
So the question is, do you have the experience and willingness necessary to buy a foreclosure or pre-foreclosure? I am certified in all aspects of the foreclosure and short sale process, and would be happy to have a discussion with you.
Certified Short Sale Professional
Certified Home Retention Specialist
Blogging at: http://TheBremnerGroup.com/blog
Auctions are not my specialty, but foreclosures are. If you need help navigating the home buying process, within your price range... Please contact me and we can talk further about your needs.
Prudential California Realty
As your probably know, these purchases require all cash. I do have a company I work with that I can refer you to that will represent you at the sale and do the checking to insure the property has clear title at time of the auction and also will bid on it for you. If that seems like something you are interested in, please let me know firstname.lastname@example.org They specialize in purchasing properties at auction for clients.
They have purchased over 75 properties in the past 12 months at auction and can get through all the hoops for you.
The Carrabba Group
Keller Williams Hollywood Hills