How do I go about buying a foreclosed home at auction? What do I need to know about taxes / mortgages / liens on the property?

Jef
Home Buyer
Arnold, MO

I am interested mainly in Jefferson County MO . I am looking for a home for myself; not as an investor.

Answers (2)
Dan Chase
Home Buyer
04401

I would say you need to know about all of the other liens, taxes, and 2nd, 3rd, maybe 4th mortgages you do NOT know about. If it is a condo or part of a HOA paying place you could be 3 years behind on dues. The same with electric, water, and gas bills.

If you read a lot about repo auctions you will find that most people say to wait until it is an actual bank reo-foreclosure. When the bank is selling it it is free of other liens, or at least they say what they are. Unlike at the court house steps they are only selling thier interest in the property, it may be completely theirs, it may not be.

Focus on actual foreclosures, forget about auctions unless you are given a complete list of liens and other encumbrances the property has AND They will guarantee nothing else is owed on it. ( never going to happen on a foreclosure)

For tax and liens you can look at the town office or the registry of deeds. If one is the wrong place they will tell you where to go for the right place. BUT not all liens are necessarily filed. There could be something that is not there the property is still under.

Look up on youtune auction on courthouse steps. You will find videos of someone saying the words and no one is interested. Not a buyer present. The reason is not knowing what all is wrong with the property ( no inspection possible) and not knowing what else is owed on the property.

Fri Oct 16 2009, 13:30
Kellie Leach Me...
Agent
Saint Louis, MO
FIRST ANSWER

Jeff, first, you need to make sure you use a real estate agent! Foreclosures are tough because you are really at the mercy of the Bank that owns them. Taxes can be looked at in the past tax records and a mortgage can be obtained...many foreclosure do not allow an FHA loan but, a few do. It depends on the bank. Please let me know if you need any further assistance.

Fri Oct 16 2009, 11:53

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