i should add that you cannot get title insurance for a trustees deed.

you will get clear title, and a nice policy of title insurance, from a bank as a repo on resale.

for the very largest percentage of buyers the answer is NO. the enormous inventory of repo homes makes the dangers of buying in that arena unnecessary.

the amount of legwork that goes into a presale due diligence package is just too much for the bulk of homes that are overencumbered and which will be sold to the first on their credit bid for their note balance.

Karl,

My partner, Greg, and I went to our first trustee sale yesterday at the Ventura County Courthouse. Just finding where the sales take place was a challenge initally. We were directed by three different people to wrong locations. The sales take place outside the Hall of Justice in a corner near the pay telephones and bike racks.

There was a small group of people -- maybe 20 to 25. It quickly became apparent that many of the people were regulars or 'heavy hitters' as one person told us. The whole process lasted about an hour.

If you are serious about a house that is going to auction, we would recommend that you attend several to become very familiar with the process. All of the properties that we saw auctioned, reverted back to the banks except for one property.

And one more item - one of the 'heavy hitters' told us that a buyer cannot get buyer's remorse. There is no buyer's remorse; it is a $25,000 fine and you go to jail. That is worth checking out!!

"Doing Real Estate Right"

At a trustee auction, it is an all cash purchase. Consider that other bidders will be there, usually investors. Everyone will have their own "number" that they will be willing to bid up to. You also need to be certain which loan is foreclosing. In most cases, you will want it to be the first note so that all of the subsequent notes (2nd or 3rd) would be wiped out by the auction. You'll want to do your research, a title company or Realtor who has a good relationship with a title company should be able to help you. Sometimes, excellent opportunities can be realized at a trustee auction because there are very few buyers in a position to pay all cash on the spot for hundreds of thousands...depending on what your looking at.

I'm the local RealtyTrac agent and a C21 Realtor for Simi, Moorpark and the Conejo. You can find more information about foreclosure actions at the web site below. Please let me know if I can assist you further.

Peter,
A Trustee's Sale on the majority of foreclosures nowadays is nothing more than a formal auction enabling the lender to acquire the defaulted property, and evict the former residents. Yes, it IS worthwhile for you to attend an auction at 800 So. Victoria Ave., in Ventura. However, this is so you can see and learn the mechanics of the Trustee's Sale process. However, in the event the 1st mortgage holder has a negative equity position greater than the current market value, it would not be prudent for you to bid at the auction... In other words, if the current balance owed, PLUS any additional liens (i.e. Property Taxes, IRS, contractor, etc.) is greater than the current value it will likely simply revert back to the lender. This lender will later market the property as an REO (real estate owned) on the open marketplace. I have posted more information on Foreclosures and Short Sales on my website. Good Luck in your home search.