Lee - Foreclosures?

Lee - Foreclosures?

As a bride-to-be, I know this isn`t the board where I am supposed to be posting. However, I have a question for you in re: to foreclosures. From reading past posts, I understand that you work for a company that forecloses on homes and buys and sells property, so I thought you might be able to help me.

- When the house is auctioned, does the buyer/s have to have cash in hand?
- Is there anyway to view the house (interior) before bidding or do you buy sight unseen?
- If the house is built before 1930, where can I find info about the number of bedrooms and sqaure footage?

The house is in very decent condition (outside) and in a great location. I was able to use a few connections to find out add`l info (survey listing dimensions), but nothing in regards to condiiton (interior)and # of bedrooms/bathrooms.

Do you have any advice?? House is being auctioned in the middle of May, so I want to do all the research possible before going to Town Hall.

Thanks and sorry for posting on this board!

Colleen

Just so I know for sure - this is going to an auction sale, right? It's not something that's already been foreclosed on and is now real estate owned by someone? I'd like to get you the best info...

Lee

the house is going to be up for auction at town hall. i called the bank's attorney and i did get more info, but not that much to feel confident.

thanks

Ok -- Bidding at Auction Info

Colleen, here's how it will work. Every county is different, so you should confirm with the Town Hall about the payment amount. You will have to have at least a large cash down at the courthouse steps. Some will want certified check and at least 1/3 down...sometimes more. You will have several days to make the full payment. Some counties require the full bid amount or at least proof of cash from the bank. Unfortunately, we have seen it work in all of these fashions, so you should really confirm with the town what their proceedure is.

Typically, you cannot see the interior of the foreclosure property unless it is already listed for sale -- that is, it went to auction, no one bid on it, so the property reverts back to the bank. The bank would then list it with a realtor and try to sell it for anything they can get for it (This is known as an REO property). Once it's listed with a realtor, it's like any other house -- just cheaper! Unfortunately for you, since it is going to the fc auction you cannot go see the interior, since legally you would be trespassing...that's the catch with a fc -- you don't really know what you are buying.

In terms of the specs on the house, the courthouse/town hall should have something available.

Good luck -- sometimes you really find a gem of a house this way! Hope this helped...

Thanks

I went to town hall and got the survey of the property. I also spoke w/ someone in the neighborhood and they said to knock on the door and ask the homeowners if they would allow you to view the house. I am somewhat apprehensive about doing this, but the worst they can say is NO. In addition, I spoke w/ a lawyer who said in some cases a deal/offer can be made w/ the homeowner directly before the property goes up for auction. For example if the house is being auctioned for $100,000, you can offer the homeowner 105,000. They pay off their debt, transfer ownership and make a little extra on the deal. He did mention that this should NOT be handled w/o a lawyer present and you must have the loan, ownership, debt/lien information and a Equity Purchase or Real Estate Purchase and Sale Agreement if you intend on dealing w/ the homeowner.

Worst case scenario, If I am not able to view the house prior to the auction and if the house turns out to be a sh*thole, I could definetly turn around (pain in the a**) and sell it and definelty make a profit. Location wise, this house is ideal (practically waterfront).

Thanks again!

No problem

Just be very careful if you approach the homeowners -- not only legally, but safety-wise. Many homeowners are upset about the foreclosure process and destroy property, etc. You don't know how they will react to being approached. Also, most companies in this business offer a 'cash-for-keys' strategy -- giving the homeowner cash to leave the property without having to go through the foreclosure process, so they may have already had that option and turned it down.

Document everything, and you're right -- if it turns out bad, you can always sell for a profit!! Good Luck again!