For those who don't want to pursue a short sale, yet don't want to compete with the frenzied bidding that sometimes occurs with bank owned homes, in Arizona, there's an opportunity to pick up a home "at the courthouse steps."
If a home is headed to foreclosure, it will have to pass from personal ownership to bank ownership. The bank will first give the public an opportunity to bid on the home. Here are a few of the things to do:
- Find out which properties will be available for auction and where.
- Perform due diligence (title search, inspection, competition shopping).
- Bring a $10,000 cashiers check to the auction.
- "Pull" the property that you would like to bid on.
- Bid against other interested parties.
- Pay the full cash amount (minus the $10k already paid) by 5 PM the next day.
This method is best explored by those who a) have cash or b) have resources for quick interim financing and affordable final financing.
If you're interested in this process but would like someone to assist you, there are several organizations that will help you for a fee.
Why would you want to do this?
Of the several hundred homes that go to foreclosure each day, many of them will be sold at a significant discount. If done correctly, such homes can be purchased well below the existing home prices in the neighborhood (which includes bank owned properties). We have clients and associates who are purchasing homes at 20 to 40 percent below market. It's not rocket science- just math and legwork. If you'd like to know more, just let me know.
Chuck Willman assists people in their search for Arizona investment properties. www.AZvest.com