Here's a quick "risk scale" for property purchasing (from highest-to-lowest risk):
1) Trustee Sale,
2) Auction Company Sale,
3) REO (reduced disclosure requirements),
4) Short Sale (primarily risk is approval timeline), and
5) Non-Distressed Sale.
Finally, a few words of caution...
"REOs: How Buyers Can Avoid Hidden Unsecured Property Tax Liens"
Thanks for your question.
Buying a REO property on High Court Steps can be an attractive
Situation provided you have done your homework, and found out what the liens are,
Condition of the property and who is in the property.
Sure, while you wipe out lender 2 or 3, you have to cover any City and IRS liens.
Homes offered via http://www.auction.com are a different ball game.
Yes, these are very, very,very, high risk transactions.
Trutsee's Sales, or foreclsoure auctions are the closest thing there is to the old wild west and high stakes poker that there is.
There are absolutely no guarantees of any kind, and there are absolutely no refunds under any circumstances. There is no financing. All purchases are paid with all cash on the spot, paid with Cashier's Checks.
When I say there are no guarantees, I mean there are really, really, really are no guarantees.
There is no guarantee that you are even purchasing an interest in the property, even though you do get a Trustee's Deed.
There is no guarantee of good title, or clear title or that the property is free of tax liens, mechanics liens, garbage liens, judgments or many other possible types of liens that are too numerous to even mention..
There are no inspections allowed. If you attempt to inspect the property you can be arrested for trespassing.
There is no title insurance. .
There is no guarantee that you will even be able to occupy the property after you have purchased the property.
And, remember... there are absolutely no refunds under any circumstances.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: email@example.com