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BUYING FORECLOSURES - UNDERSTANDING DUE DILIGENCE !! !! !!
Wow! I just bought at a foreclosure sale and got a $400,000 house for $50,000!!!  We actually had TWO calls like this in the past week. Too good to be true? Listen and Learn of the heartache to come....
I have written about issue this twice this summer and every time another buyer comes in moaning that they were "duped" into buying at an inferior foreclosure auction my heart goes out to them.  For explanations of the lien priority see ASSOCIATION LIENS AND MORTGAGE PRIORITY and ASSOCIATION FORECLOSURES - FRAUDULENT NON-DISCLOSURE. 
The most common complaint is that the buyer was misinformed because of non-disclosure.  This all comes down to issues about "due diligence" and a lack of understanding and appreciation as to what "due diligence" is all about.
In the two instances I refer to, the first was the typical "to good to be true" scenario.  First mortgage filed for foreclosure but canceled its sale date in August.  Frustrated by the delay, the Association decided to move forward with its lien foreclosure and got to a foreclosure sale date prior to the lender getting to their sale date.  Our client purchased at the first to occur sale date and learned that in just six weeks the lender sale will ... more

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