Property Q&A in El Sobrante>Question Details

Cynthia, Home Buyer in El Sobrante, CA

how do i buy foreclosed home?

Asked by Cynthia, El Sobrante, CA Fri Feb 19, 2010

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This question is about this property: http://www.trulia.com/foreclosure/map/2007744188--N-Rancho-P…

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If you're thinking of buying at the Sheriff's auction, you should first just go observe a couple (in Contra Costa County they are Mon-Thurs at 10:00 and 1:30 on the courthouse steps). You will find 20-30 "pros" representing investors, and very little actual bidding. First the clerk reads a list of sales that were postponed (may be more than 200). Then when they get to the actual sales, most get no bids above the minimum the lender has set, so are bought by the lender. The few that do get real bids have 2-3 bidders and it's over in 2 minutes.

I can not stress enough the pitfalls that others have outlined. You are buying a high risk "pig in a poke". The folks on the courthouse steps represent investors who can afford to "buy wrong" once in a while and absorb a $100,000 loss. Can you risk that?

Much better to find a Realtor you can work with to help you search for the REO's. Shoot me an email and I will send you current REO listings in whatever cities and price range you want, and set you up to get an email every day with new REO listings that meet your criteria .

One last word of warning. You will not find REO's at 50% of market value or anything near that. Most REOs will sell for 90-95% of a similar non-REO.
0 votes Thank Flag Link Sat Feb 20, 2010
Buying at the foreclosure auctions is one of the riskiest, and most rewarding, foreclosure opportunities. Buying at auction typically requires foregoing inspections, title insurance, and financing (you need cash); and may even require you to evict the prior owner or tenant. But these hurdles lower competition, and therefore present far better discounts to those that can overcome them.

You can search for pre-foreclosures and foreclosed homes on my website.
0 votes Thank Flag Link Fri Feb 19, 2010
Just make sure you're buying the first position, not any other junior positions. I've heard newbies doing court auction purchases only to find out the trustee sale was for the 2nd lien. Not fun if the 1st will foreclose on you once you take that position.

If you do buy the first position, then you'll need to get ready for some legal action to evict the occupants. Get with a lawyer for that...

If you don't want to do trustee sale buying, then wait for the lender of the first to bring it to market with an REO agent. Depending on the condition of the property, the listing price will be priced lower than FMV for quick sale. If it's down right a dump, you may get a good price for the dump...get ready for fixing up and maybe get it up to code.

Lots to think about. I guess my question to you is, why do you want to buy a house, especially a foreclosed house?
0 votes Thank Flag Link Fri Feb 19, 2010
Check your newspaper public filings. You will see trustee sale dates for specific loan amounts,APN's, addresses & location of sale. Take this info to your esrow office & order a title report. Go see the property.You should than have enough info to make a decision if you want to purchae at the trustee's sale.
0 votes Thank Flag Link Fri Feb 19, 2010
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