Win at REO Auctions !
Make sure you are experienced in buying real estate if you are going to bid at auctions!
In Greater Phoenix, REO (Real Estate ‘bank' Owned) Auctions are quickly becoming today's ‘get rich quick' opportunity being touted by, well banks, and those who run the auctions.
REO Auctions are being advertised as your chance to win the Real Estate Auction sweepstakes.
However, be careful, do your homework and know the rules.
REO (lender owned) real estate auctions are offered by banks that have repossessed the property after they have gone through an unsuccessful (Arizona) trustee sale/foreclosure.
Typically, at the Trustee sale Auction, the property is offered at the amount owed (plus expenses).
However, if no buyer, and there are plenty of bargain hunters (if you don't believe me go to the Maricopa County Courthouse steps at 2pm any day of the week)) bids the minimum required by the lender, then the property is taken back by the bank.
The bank then lists the property for sale and/or offers it as a lot in one of the many real estate auctions in Phoenix operated by a multitude of (very profitable) Auction houses.
Most, auctions require registration and a $5,000 cashier's check in order to bid. Properties are sold "as-is" and buyer's typically pay up to 5% fee on top of the winning bid.
However, I urge you to do your research by obtaining a list of the properties for sale at the Auction.
Drive by the homes; even attempt to preview the home you are planning to bid upon. This is not a collectible on ebay. This is a big investment. Don't over-bid for the sake of winning.
Finally, some advice.
Yes, there are bargains to be had for prudent investors.
Phoenix, Scottsdale, Glendale, Peoria, Mesa, Tempe are beautiful communities over-run with foreclosures. There are plenty of success stories of homeowners who realized their American Dream at a dream price at these Phoenix area REO Auctions.
However, in most cases, if the property was so valuable it would have sold at the Trustee sale Auction and never made it to the REO auction.
Likely there is a reason that no one wanted to buy the home.
That reason is usually because it is not worth more than what you are paying!!
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Copyright © James Wexler, *Win at REO Auctions*
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs
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