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
951-888-0598 (text and voice mail only)
I have a few questions.
â€¢ Are you trying to purchase one specific property?
â€¢ Are you trying to purchase rental property?
â€¢ 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.
Feel free to contact me if you have any questions.
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.
DRE # 01398570
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!
OC Homes Realty
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