Foreclosure in Los Angeles>Question Details

Daylan, Home Buyer in Los Angeles, CA

Been looking at foreclosure auctions. How difficult is the process of buying a home this way. Any agents specialize in this? Thank.

Asked by Daylan, Los Angeles, CA Sat Jan 21, 2012

I've seen several homes that have looked great, however I've heard that this is a sometimes difficult process after the home has been purchased. Repairs, evictions, etc. Are there any agents that specialize in this process?

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9
Leave that to the seasoned investors with deep pockets and large staffs... is very difficult for a new comer and the risk outweighs any benefits by far...

you can get good deals in the regular market... just get a good buyer's agent with experience and track record and you will make a good investment in no time!

Best of luck!
1 vote Thank Flag Link Sun Jan 22, 2012
Daylan,

Here are some things to think about before doing this:

1. You will need all cash
2. You will be competing against veteran investors
3. You will not get to do inspections
4. You could have title issues
5. If you want an agent you will have to pay them out of your pocket. Most agents I know don't do these kinds of deals.

You may consider looking at REO properties that are listed on the MLS. They frequently are priced better and you can deal with inspections and title issues.The process and disclosures for these are different from regular sales though, so get someone familiar with the process.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
1 vote Thank Flag Link Sat Jan 21, 2012
I am an investor. I specialize in Highland Park, Los Feliz, Echo Park, Eagle Rock, Hollywood Hills, SilverLake. We are looking at deals with end-users where we help them find and negotiate the best deal - we buy it, they fund it, .........then we do the rehab........and if they like it....they buy it......if they don't want to ......they are paid returns as an investor and we go get the next one. We do have experience with auctions.....and all the warnings you're getting are absolutely true here. Be careful with the auctions........leave that to the professionals

Call me if sounds interesting
808.371.4179
http://www.1801Bellevue.com - check out our last project
0 votes Thank Flag Link Sun Jan 22, 2012
I see you're from the LA area. Is this the area you wish to invest in? Would San Diego be a viable alternative? If so please contact me. We specialize in distressed property acquisition and could help you cut through the fog with relative ease. But regardless of where you intend to invest I can see by the tone of your question that you need to work with an experienced RE professional.
760 815-6977

http://www.sandiegorealestatetoday.com
http://www.chadofalltrades.com
http://www.intimatelivinginteriors.com
0 votes Thank Flag Link Sun Jan 22, 2012
As opposed to all the unknowns of the auction process, have you considered a Bank Owned Property (REO)? While you are purchasing the REO property "AS IS", you do get an inspection contingency. Typically, REO sales go fairly quickly especially as compared to Short Sales. Just something you may want to consider. Best of luck!

Risa Liebster, Realtor®
Ramsey-Shilling Associates
818.397.9188
RSLiebster@gmail.com
0 votes Thank Flag Link Sat Jan 21, 2012
Hi Daylan,

I understand your question. If you call me at 323-219-4480 or email me directly, I have a good idea of what you might do.
Cheers-
Lynn LeGlaire
Keller Williams Realty-Larchmont
0 votes Thank Flag Link Sat Jan 21, 2012
Hello Daylan,

If you buy a property at auction it's with all cash. The majority of the auctions get postponed. You take the property as is and you don't have a chance to view the inside. You also may get stuck with a property that has other liens on it. Tenants. Evictions. Unknown repairs. If you don't have all cash it's best to go for a bank owned property or short sale. You don't need an agent to represent you at the foreclosure sale as there is no escrow process. It's a cash sale as-is and super risky for the novice.

I am happy to help you find a bank owned property or short sale.

Best,

Monique Carrabba
The Carrabba Group
Keller Williams
(323) 899-2900
0 votes Thank Flag Link Sat Jan 21, 2012
Thanks for the responses. Is it possible to purchase a home that is supposed to go to auction but hasnt yet. There's a home I'm looking at that has a defaulted amount of $18K and a total loan amount of $456K. Could we come in and offer to pay the defaulted amount there'by taking them out of default and then purchase the home from the owner? Would we have to come in at the $456 amount even though the home is worth 100K less. Market value is estimated at $314k.
0 votes Thank Flag Link Sat Jan 21, 2012
Tremendous competition for California whereas some investors have stopped and started purchasing the non-performing mortgage notes outside California. Short Sales can be typically priced under value but the bank can still counter higher. Banks know the process and value. When clients hear about fix and flips they are not in the best areas and they are experienced in full renovations. You can invest in non profits that buy from banks and rehab with a return on your money with no hands on; depends on the amount of money you have to work with as this takes about 35% of the purchase price.
0 votes Thank Flag Link Sat Jan 21, 2012
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