Home Buying in Fiddletown>Question Details

Jen, Home Buyer in Fiddletown, CA

What is the difference between buying a house that is in forclosure from an auction, vs. buying a bankruptcy at auction?

Asked by Jen, Fiddletown, CA Wed Oct 21, 2009

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2
Hi Jen,
Dan is right on the money.
What you have to do is team up with a Title insurance representative. That way you can see the history and liens on properties.
There are times that you will be able to find a good deal at the County Steps, but if it doesn't meet the beneficiaries demands, you will not get the property even if you got the highest bid.

Good luck,

Jes Sierra, B.Sc.
Realtor®
Chino Hills, Ca
0 votes Thank Flag Link Thu Oct 22, 2009
A true foreclosure (REO) is completely bank owned. You are buying the house.
At an auction the bank is selling their interest in the house. There could be many other loans, liens, taxes, utilities and more that have a claim on the house. You do not know if you are buying the house, or buying the house with another $50,000 due to other people from the house.

Plus, most importantly, in a reo you can look the place over. Find out everything that is wrong with it before you have to pay.
At an auction you do not get a chance to have it thoroughly looked over. A lot of the time you are lucky to even see inside the house.
Then consider this: lots of people do not have the $$ down to bid. If you do then can you get all of your financing in order within 30 days ( or so) so you do not lose what you put down to buy?
0 votes Thank Flag Link Thu Oct 22, 2009
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