Home Selling in Miami>Question Details

Matias, Renter in Miramar, FL

How smart is buying the property I've been renting for the last 2 years in auction.com?

Asked by Matias, Miramar, FL Mon Sep 2, 2013

I have been living in this property for the last 2 years, I have always paid on time rent (to the association) now the bank took posession of the house and they told me I have 90 days to vacate (by law). I'm interested in buying the property, since I really like it, but the bank says they will sell the house via auction.com. I don't understand why, I'm telling them I'm interested and I already got pre-qualified for a mortgage. The auction will start at 15,000 and the house is about 150k. Is it a good and safe option to buy through auction.com ?? If of course, I win the bidding?

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14
Thanks for all your answers. I will not complicate my life, so I'll just look for another place to rent. Cheers! Matias.
1 vote Thank Flag Link Tue Sep 3, 2013
Why look for another place to rent., It sounds like you were interested in buying. There are so many great options out there. If you are qualified to buy then a realtor can help you find a house of your own. You said you make your payments on time which shows that you are responsible. There are great deals right now on properties making the mortgage less than renting and with every payment your are contributing to your bottom line, not someone else's. Best of luck.

Home Security Atlanta-http://www.cfasecurity.com
Flag Tue Sep 3, 2013
Buying at auction.com can be risky. Even though you know the house very well, you have to be careful that the terms of the sale are in your favor. The banks use auction.com to try and get the highest price by having buyers bid against each other. You have to make sure that your bid price is correct.

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.
1 vote Thank Flag Link Mon Sep 2, 2013
Hi ,

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
Tenzer Realty
Cell 786-314-6100
Email; SamanthaTenzer@yahoo.com
Website: http://www.tenzersellshomes.com
0 votes Thank Flag Link Tue Oct 22, 2013
Hello Matias,

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
0 votes Thank Flag Link Fri Oct 18, 2013
Not every auction at auction.com is the same, BUT, most of the time you will have to purchase the property all cash, there will be no special warranty deed but a quit claim deed. If you do not have experience buying at auctions I will not recommend but if you are determine to do it and have the cash hire an attorney or a title agent to complete a lien search and examine the title. A lien search can take up to 30 days if the property is located in a municipality other than unincorporated Dade therefore you need to find out if you will have the time to do it.

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).
0 votes Thank Flag Link Tue Sep 3, 2013
Stay away. Get an experience attorney like Paul Sardon to represent you. He can call the bank directly on your behalf. Call me for the number. 3058017511

JENNY Arias May
Metro1 Properties
0 votes Thank Flag Link Tue Sep 3, 2013
Matias,

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!!

Regards,
Alberto Baca
The Keyes Company
AlbertSellsHomes@gmail.com
0 votes Thank Flag Link Tue Sep 3, 2013
Matias,

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.
0 votes Thank Flag Link Mon Sep 2, 2013
Matias ... just Google: 'Auction.com complaints" then click on "Pissed consumer' ... is all there ... you won't believe your eyes ... just terrible what this people do. We are hoping for some meaningful legal action soon ... E!
0 votes Thank Flag Link Mon Sep 2, 2013
OMG!!!!! Matias stay as far away as you can from Auction.com! it is a 'legal' scam ... I was present at the board of Realtors Legal Update on Aug. 21, 2013 and this subject came up ... same on a C.E (continue education class) ... there have been so many complaints from different agencies but specially from consumers that FREC (Florida Real Estate Commission) is considering taking action ... their terms and procedures are shady, the violation of local, state and Federal laws are many and the end result is always anger from everybody involved in the transaction. Don't ever trust what you don't know but specially what you do not understand ... very smart on your part to seek advice before you commit any of your time but specially your money ... Good luck!! E!
0 votes Thank Flag Link Mon Sep 2, 2013
Matias,
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.
0 votes Thank Flag Link Mon Sep 2, 2013
Yes you can buy it anf of course, I can help. There is a situation with property in Auction and it is no contigency to financing. If you need more information, just call me 305 519-3199.
0 votes Thank Flag Link Mon Sep 2, 2013
No commission for the Buyer's Agent 99% of the time. 1% in some instances.
Flag Tue Sep 3, 2013
Nereida, before you volunteer your services... you might want to check if they're paying commission, and what the commission is. Because I had an investor who wanted to buy a property on their site, and I told them they were on their own... I don't work for free!
Flag Tue Sep 3, 2013
Nereida ... really? seriously? Auction.com is a scam and everybody or, almost everybody, knows it ... please do a minimum of research before you advise anyone to go ahead with a process where there are so many variables and perils.When you said 'I can help' you mean exactly what? you can help him waste his time and loose his money? because that is exactly what is going to happen if he gets involved with Auction.com. Just Google Auction.com Complaints and click on Pissed consumer ... you will realize quite fast your faux pas. This medium, where we can communicate directly with consumers, potential buyers, sellers or renters is a privilege but specially a responsibility that we must take seriously ... the reputation of all of us depends on it ... E!
Flag Mon Sep 2, 2013
Hello Matias,

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.

Good luck!!

Regards,


Pablo Torres, MBA
AF Realty, LLC
786-205-6988
pabtorres@aol.com
http://www.miamibuyproperties.com
0 votes Thank Flag Link Mon Sep 2, 2013
Yes, it is safe. But hire an agent to assist you with the process anyway since there is much more than placing a bid. The auction company will charge a premium for their service, a fix percentage of the final winning price (often 5%). Then there will be title paperwork. Agent representation on a buyer side is always free, so don't skip it.

Tony Vega
Antonelli Realty
0 votes Thank Flag Link Mon Sep 2, 2013
There is no commission for the Buyer's Agent at auction.com
Flag Tue Sep 3, 2013
To tell someone, anyone, that it is 'safe' to purchase a property on an auction with so many variables is irresponsible at best ... have you done your research before you dared to 'speak' ?... I bet not!
" It is better to remain silent and be thought a fool than to speak and remove all doubt" Abraham Lincoln / Proverbs 17:28
Flag Mon Sep 2, 2013
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