Also, remember the 5% Buyers premium cannot be financed. Finally read the terms of the contract carefully, many homes on auction.com do not have a financing contingency in the contract. If your financing falls through you will lose your earnest money.
I would not proceed without the help of an agent that has experience with this type of sale.
You have to be very careful when buying property with Auction .Com . They do not protect the buyer at all . You would need to get some legal advise to help you with the process . There are many loop holes that do not protect the buyer .
Best of Luck !!!
Samantha Tenzer Friedman
The bank will try to sale the home at auction first. These sales are ALL CASG sales, and are the preferred way for the bank to sale the property.
IF he home does not sale at the auction, it will then be placed on the market fro sale as a REO . At that time buyers using financing will have a chance to buy it.
Unless you have cash and can go to the auction and bid on the home, you will have to hope it does not sale at auction, and gets listed on the open market.
Keep in mind, if and when it goes on the open market there may be multiple offers from buyers including CASH buyers, so you may not even win the bidding war..
My advice to you is, if you really want to buy a home do not get too hung up on buying this one. It can take several months before it is on the open market, and in the meantime the bank will begin the process of having you move from the property. They will not deal directly with you and sale it to you even through you have been pre approved for a loan.
Select a local realtor and have him/her search for a home for you. You may loose out on a good thing waiting on a "Maybe" with this home.
Best of luck to you!
Kawain Payne, Realtor
The starting bid is irrelevant at any auction, if you believe the property is worth $150K then that is probably what it will end up selling for if not more. Don't forget you will also have to pay the auctioneer premium 4%-6% and any taxes, HOA, etc past due if the Lender will not be paying those (details at auction.com).
It's always risky to buy property in auction but at least you have one positive factor going for you, that you know the property very well. I advise that you contact a qualified real estate sales professional and a RE lawyer as well before you do this. Good luck!!
The Keyes Company
It maybe possible for you to buy the property if they authorize the sale as an occupied property but it seems they want to sell the property as vacant so my suggestion before the evict you is to negotiate the cash for keys and take everything that belongs to you (if is a fixture or appliance make sure you let them know in advance) and find another place.
In the other hand if you paid rent to the HOA you may have a credit. if you paid for 2 years because it doesn't make any sense. They must had the account settle for the money was owe to them. ( you need an attorney) if the homeowner association collected the rent and make a rental agreement after they foreclosed then any outstanding balance belong to them.
My suggestion on this cases where renters are interested in buying a property that has been foreclosed by HOA and/or HOA is demanding the payments there is a tons of ways to do a short sale but never wait until the bank foreclosed on the property because they want to sell to the higher bidder not the current tenant.
Please let me know if you have any question I may guide you.
for advice you have to contact an attorney, my experience is base on knowledge and previous costumers experiences.
If you are going to buy a home, you need to consider all of your options, not just the place you've been living in. It would be convenient, but you have no advantage over other buyer's who may be more prepared and more experienced. Buying a foreclosure or at an auction is not generally advised for the first time home buyer.
Get a great local agent and lender. Get pre-approved and consider all the options available to you. Best of luck.
If you buy anything at auction it is wise to do a preliminary tile search or get an opinion of title.
A real estate attorney can help you in this process.
A buyers agent will guide you with the buying process.
Pablo Torres, MBA
AF Realty, LLC