Home Buying in Irvine>Question Details

Greenmoon, Home Buyer in Irvine, CA

What real estate agent could help if I want to buy at trust seed auction? How can I check if it is first lien?

Asked by Greenmoon, Irvine, CA Sun Aug 12, 2012

What real estate agent could help if I want to buy at trust seed auction? How can I check if it is first lien? Thanks a lot!

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We provide trustee sale bidding service, we undertake all title searches and verify lien positions on behalf of our clients.

Purchasing trustee sales property at auction can save a buyer between 10% and 15% off fair market prices

Buying discounted properties at trustee auctions is fast becoming one of the best investments in real estate. Be advised that this business is not for the inexperienced or the meek hearted. One of the reasons investors choose to use a trustee sale bidding service like greenpot.com to buy for them at auction is that it takes some of the fear out of the process. There are other advantages as well and we will cover them in the article, but first let's define what a trustee sale is and the overall process of foreclosure.

When a borrower on a property fails to make payments on a loan (note) the beneficiary (bank) will start a trustee sale to take the property back as collateral for the defaulted note. Usually, this process starts within 90 days after delinquency. Some sales may be delayed as much as a year or two.

Buying homes at orange county / riverside county trustee sales is not without pitfalls and should only be done after you have done your research and understand exactly what it entails. For someone trying to buy at trustee sales the process can be daunting and intimidating. You must have a lot of time and be willing to learn the process involved with trustee sales. You need to research and screen Notice of Trustee Sale database. You must have the ability to undertake all title searches and verify lien positions.

Auctions run all day long from 9:00 AM to 5:00 PM and are in multiple locations around county. You really must be ready to make this a full time job. A typical day will start in late afternoon when you go through the foreclosure list and pick the properties for the next day. You will need to rise early and be driving properties from 6:00 AM until 9:00 AM before the auctions start. You will attend auctions from 9:00 to 5:00 and then start looking through the auction list for homes to purchase the next day. Buying homes at trustee sales are time consuming. Many are cancelled or postponed. You MUST have time on your hands if you wish to buy trustee sales yourself. So why do it yourself? Let greenpot.com real estate specialist do it for you.

We offer a service where we will locate properties going to sale, determine if the opening bid is descent, drive by the property to determine condition, comp out property for the fair market value. We will discuss the properties to bid on, determine if its a good deal and set the maximum bid with you before the auction! In California you must pay all CASH at the auction, so this will require cashier checks! We only charge you if you are the successful bidder and win the property! Upon final successful bidding, you will receive the Trustee Deed Upon sale in one to two weeks.

Orange County / Riverside County Trustee Sale Bidding Service
Our commission is 2% of executed final bidding price

Good luck,
Terri Lu
951-888-0598 (text and voice mail only)
949-335-6449 (direct)
Web Reference:
http://www.greenpot.com/trusteesale.htm
http://www.greenpot.com/
0 votes Thank Flag Link Sat Jan 4, 2014
My associates and I have help clients purchase auction property, however these have been clients that we have ongoing relationships with, because there is so much risk involved. These are “as-is”, cash purchases. If you have a local friend or family member you may want to elicit their help. If you are still looking to get a realtor involved, simple offer them a commission based on the purchase price.
I have a few questions.
• Are you trying to purchase one specific property?
• Are you trying to purchase rental property?
• Are you looking to rehab and flip?
The answer to these questions may affect the way that you chose to proceed.
One of the best resources to find property info for auction property is the web site http://www.Foreclosureradar.com. This is site is actually recommended by the auctioneers at the trustee sale.
Good Luck,
Feel free to contact me if you have any questions.
0 votes Thank Flag Link Sun Aug 12, 2012
Greenmoon,

The other folks on this thread have provided great information. I will add that you need to make absolutely sure about ALL liens on the property. Even more important you need to make sure it is the FIRST LIEN HOLDER that is foreclosing. I know of several folks who have gone to an auction and won with a bid of $100,000+, only to find out (too late) they had bought the 2nd Trust Deed only. In all cases there was a First Mortgage holder who was going to foreclose at a later date. In all cases, they lost ALL of their $ when the 1st foreclosed a few months later.

Remember, if it sounds too good to be true, it is.

Proceed with utmost caution.

Thom Colby
CA Broker
DRE # 01398570
0 votes Thank Flag Link Sun Aug 12, 2012
Brian, Tim, Thank you for the information. The area I am interested in is in Irvine,CA. So Brian is right that we need to pay cash.

Is there any good title company in Orange County, CA you would recommend? Except Title research, is there anything we can do to lower risk?

Thanks a lot!
0 votes Thank Flag Link Sun Aug 12, 2012
I assume you meant Trust Deed. The best way to check title on your own is through public records however if is being sold at auction it most likely has a first lien that is in default and the bank is doing the auction at the court house steps. At least that is what happen's in CA. As the other agent said, this is not an easy thing to do. There are several big fish that go to the auctions and buy up the properties that are good deals. Also, if the house is selling at the court house steps it should have a clear title.

Lori Hanson
OC Homes Realty
0 votes Thank Flag Link Sun Aug 12, 2012
Hello Greenmoon,

Buying at a Trustee sale can be a bit of a risk as you seem to be aware and you will want to be sure the title is free of any outstanding liens or issues. A cloudy title can ruin what looks like a good deal. I will assume you know these are cash deals and you need to be ready to pay at the end of the sale (cashier's checks).

If you haven't been to any of these kind of sales I would suggest you go to see how it is done, they move rather fast.

Why no Realtors assist with these is there is no commission to be earned and if one was to advise you or assist you somehow they have created a form of agency and can then if there is trouble that Realtor is putting them selves in a bad position.

The investor auction business has many challenges but can be rewarding too. Do your homework and good luck.

P.S. I don't know New Jersey rules so I could be way off base.

Brian Wilson, California Realtor
DRE# 01321478
0 votes Thank Flag Link Sun Aug 12, 2012
Never heard of a trust seed auction. Realtors don't get involved with auctions to often and unless they pay a commission or unless you pay them directly they probably are not going to work for free. A title search is needed to check for liens, you are into an area where beginners don't often tread because there are many expensive pitfalls to avoid.
0 votes Thank Flag Link Sun Aug 12, 2012
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