Home Buying in Concord>Question Details

Slowfoodisgo…, Home Buyer in Concord, CA

How doe ordinary people buy a foreclosure?

Asked by Slowfoodisgood, Concord, CA Fri May 4, 2012

We see lots of foreclosure listings on this website which I understand means an auction on the courthouse steps or something, but how does it actually work and how much money do buyers need? The full price? A big percentage and approval for rest? ???

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There are basically three types of auctions. A marketing technique used by owners and real estate agents to sale homes. Auctions that are utilized by the banks to clear foreclosure property and auctions on the court house steps which is the final step to the foreclosure process.
To purchase in the first two types of auctions there is most likely a private reserve, which means the seller has a secret price that you won’t sell under. Financing is generally allowed and often available on site at the auction. Tile is transferred unencumbered and escrow is used.
From you r question is appears to me that you are more interested in the type of auction on the court house steps. This is a very different process. When you bid at the courthouse steps you must have cash in hand at the end of the auction, this is normally in the form of cashiers checks. You buy as is and where is. You take possession of the house INCLUDING any tenants or occupant, leases, tax and support liens that often go with the property and you inherit any maintenance problems with the property. This is a high risk business dominated by professional investors that have the time and money to balance out the losses with the gains and have the resources to research the properties before the auction in regards to title issues and occupants. One of most important warnings I would pass on is to make sure you buy a first deed NOT a lien for a second mortgage.
0 votes Thank Flag Link Sat May 5, 2012
Ordinary people buy foreclosures that are on the MLS. There are the ones that have NOT sold at trustee sales, and are listing with Realtors. Theese are then sold with all the protections as any other residential property you purchase.
0 votes Thank Flag Link Tue May 15, 2012
Hi Slowfoodisgood,

The best way for an "ordinary" person to buy a foreclosure is through a Real Estate agent. That way you get clear title and a vacant property. I provide a free list here - http://www.craigbosse.com/concord-ca-foreclosure-list-bank-o… .

I have written an article that explains it step by step here - http://www.craigbosse.com/how-to-buy-bank-owned-foreclosure-…

Also, don't be fooled by some super low priced homes you may see marked as "pre-foreclosure". For example a $300,000 home priced at $125,000. These are just teasers to try to get you to buy a subscription. The homes are not actually for sale.

We have tons of videos about buying bank owned homes here - http://www.craigbosse.com/category/buyers/

Good luck!
Web Reference: http://www.teamvip.co
0 votes Thank Flag Link Tue May 15, 2012
Ordinary people buy a foreclosure that is listed on the MLS. It won't sell as low but you then have all the privilages of buying a home on the MLS. These include those of us who need a mortgage, a 17 day inspection period, appraisal contingency, and property inspection.

Foreclosures are sold on the MLS and that it eh safest way to buy one.
0 votes Thank Flag Link Sun May 6, 2012
Buying on the courthouse steps is very risky if you don't know what you are doing.
You must pay the full price on the spot.
If the home is occupied it is up to YOU to evict them. If it is occupied buy a tenant with a signed lease YOU MAY BE FORCED TO HONOR THE LEASE. This is thanks to new laws to protect tenants of homes that are foreclosed on.
You get no inspection on a house you have not even been inside of.
You are on the hoop for any and all back taxes.
You better know you are buying a first lean and not a second. If you buy a second and the first forecloses you are out 100% of what you paid.
Most of the sales on the courthouse in this area don't have any bidders and the lender ends up buying / taking it back.
Your safest bet is to let the property foreclose and come back on the market. Then you can have a local Realtor show it to you. If you like it put in an offer with an inspection contingency. Then if you find serious unexpected problems you can back out of the deal and not get stuck with a bad house. If the inspection is ok and you buy it you will get clear title. The seller / bank pays all back taxes.
Web Reference: http://www.alangrizzle.com
0 votes Thank Flag Link Sun May 6, 2012
To go to the county auction often. You are welcome to join me and experience first hand how it works.
0 votes Thank Flag Link Sun May 6, 2012
As others have mentioned, auctions are usually a closed system of people very experienced in this type of sale. You must have all cash and be willing to take the property as is, even if you haven't been in the property. It's a crazy investors market out there. It should calm down a bit during the summer months when new inventory comes out.

I would suggest you be patient, work with a realtor and forget about auctions, focus on the foreclosures and short sales or other distressed listings for future opportunities. It is hardest to flip properties, better to buy and hold as a rental.

Regards,
Suzanne Looker
0 votes Thank Flag Link Sat May 5, 2012
Homes sold in foreclosure on the court steps are sold for all cash! "Ordinary People" are advised to sterr clear of them. They homes may nort have a clear title. There may be liens. Often, there are prior owners still living there that have to be evicted or squatters. Plus you don't get to do any inspections or evn see the inside in most cases.

Best bet is for a buyer to work with a good real estate agent and focus on homes that have been taken back by the bank, having failed to sell at auction. Then you have none of the above problems.

Bernard Gibbons

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Bernard Gibbons, J. Rockcliff Realtors
DRE License # 01331583
Phone (925) 997-1585 - bernard@bernardgibbons.com


http://www.BernardGibbons.com
0 votes Thank Flag Link Sat May 5, 2012
Interview different agents, and I recommend a licensed professional REALTOR. Before you subscribe to random lists. You can find great REALTORS here on Trulia.
0 votes Thank Flag Link Fri May 4, 2012
Subscribe to a reputable foreclosure list. In most cases you will be allowed to arrange for financing. Consider hiring a real estate broker as a buyer's agent
0 votes Thank Flag Link Fri May 4, 2012
Contact a Real Estate Agent.
0 votes Thank Flag Link Fri May 4, 2012
Agents tell me it's too difficult and not worth it -- I figure that's because they don't make any money from them and want to discourage us
Flag Fri May 4, 2012
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