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Questions on forclosures and Auctions

By
Real Estate Agent with Intero Real Estate

I have been fielding a lot of questions about buying foreclosures and buying auction properties and have heard that there are a lot of Super-Duper deals that "some" people, never the party I am talking too, have gotten.  Auctions are a great environment but only for the prepared.  If you don't do your home work you can get stuck with unexpected expenses. Generally, the houses that are going to auction will be available to view and inspect 2 weeks prior to it hitting the auction block. If you don't do you due diligence there could be unexpected expenses that crop after you take title. Also, lets say you're the winning bidder and it appears that you got an excellent deal - "A Super-Duper Deal", the bank still has to approve the sale if it does not meet the minimum reserve which could mean - No Deal!  My advise is to stick with a qualified agent - buy your homes when they are short sales or REO's (Real Estate Owned)  and do your homework.

Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

It would be interesting to learn more about the auctions. I see them all over, but not really understand the mechanics in details.

As for REOs, I think you are right. Not as unpredictable as Short Sales.

Jun 04, 2008 09:42 AM
Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes

Foreclosure auctions are a tough one and most people dont realize that they are not guaranteed a clean title that there maybe liens and back taxes ontop of what they have already paid.

Jun 04, 2008 09:58 AM
Anonymous
Auctions and Forclosures cont.

We have found that the clean title issues only are a concern on the court house steps. When the REO's go to the large auction houses pretty much all of the time the home will come with a clean title in our market.  You still run the risk that even if you are the winning bidder there could be a reserve minimum that was not met - in which case - no deal! However, on the court house steps, you have to have cash and you run the risks of unpaid leans - you really have to do your homework on these ones - there are deals here though.

Jun 04, 2008 10:09 AM
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