The property tax is usually paid up by the bank, that is not the biggest risk(but it should still be checked out). You could be bidding on a second or third, etc. priority lien. You may be bidding only on the land and not the mobile as discussed in a post below.
Do you know what the opening bid from the bank will be? If not, do not be surprised if the bidding starts way up there, above what a rational investor would pay.
Bidding at the courthouse steps is too risky for me, I would rather buy after the sale from the bank, then you can demand a clear title, perform other due diligence, and obtain financing.
When a forclosure comes up for auction what type of liens can be attatched to the home. I know the property tax can. But what about IRS liens or some other type of liens or judgements. Or do they follow the former owner? We’re going to bid on one tomorrow and only found it today and havent had time to research this as this will be our first attempt at auction.
Posted by Daphne Lowe on August 20, 2006 at 19:20:25:
So, its your 1st auction and you’ve done no research. The biggest pitfall is that you don’t know what you’re doing and you’re not prepared. Don’t bid anymore than you can afford to lose. Whether you strike out or hit a homer, it will be due to pure luck.