Alice, Home Seller in San Jose, CA

About Trustee Sale or Foreclosure Auction - What do buyers be wary?

Asked by Alice, San Jose, CA Tue Dec 4, 2012

Do buyers have to inherit the liens?

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Answers

5
Steve Ornellas’ answer
Hi Alice, you are targeting the most risky of ways to obtain distressed property and if you have not done this before I would refocus your purchase towards a different direction.

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"
http://www.trulia.com/blog/steve_ornellas_mba_re_mastersgri/…

-Steve
1 vote Thank Flag Link Tue Dec 4, 2012
Listen to what Charles said. It is risky.
Web Reference: http://www.terrivellios.com
1 vote Thank Flag Link Tue Dec 4, 2012
If you are buying on the courthouse steps, then yes ... you are responsible for clearing any unresolved liens other than the current loans (which are wiped out by the foreclosure).
1 vote Thank Flag Link Tue Dec 4, 2012
Hi Alice

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.

Good luck.
Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Sat Mar 30, 2013
Thank you for your question, Alice:

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.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
0 votes Thank Flag Link Tue Dec 4, 2012
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