Posted by Ben (NJ) on March 14, 2000 at 14:57:02:
Probably the worst scenario I can imagine is that the foreclosing mortgage is a second or third, you get the property and find out that there are two mortgages ahead of you, a few property tax liens, maybe some state and federal liens to boot. You need a current title report, I would not rely on anyone including (especially?) the sheriff because they will not even remember your name when the deal blows up in your face.
Burnt on auction property - Posted by HT
Posted by HT on March 14, 2000 at 14:02:28:
What are some precautions I can take to avoid getting burned at an auction I found out about at the last minute?
I believe some good deals are available and don’t want to sit it out if I don’t have to.
Isn’t the firm handling the auction obligated to detail all liens and/or judgements on the property prior to beginning the sale? If so, and I’m familiar with the property (or neighborhood), isn’t this a fair gauge to decide on bidding?
Any and all prompt responses would be appreciated?
here’s another horror story… - Posted by David
Posted by David on March 14, 2000 at 20:24:23:
At a tax sale that wipes out all leins, if a lein holder is NOT notified by the sheriff, guess what? Their lein is NOT wiped out.
A friend went to a sale and purchased a property with a lein from a finance company located in another county. The first county sheriff must deputize the sheriff in the second county to serve the papers. The second counties sheriff couldn’t find the finance company in the shopping center, and so the finance company wasn’t served and the loan was still on the property sold at a tax sale that “wiped” out all leins.
BUYER BEWARE, amen brother!
David
Safety at auctions - Posted by John Behle
Posted by John Behle on March 14, 2000 at 15:47:38:
I would not bid on an auction property without knowing the value, the condition (and any problems) and the title (and any liens or problem).
Do not rely on their info. If the auction is at the last minute, be careful. Bottom line, don’t bid without doing the due-diligence. Also, set a bid price that you will not go above - NO MATTER WHAT. Investors get caught up in the “frenzy” of the auction and tend to over bid at times. That is the goal of the auctioneer.
There can be wonderful bargains at auctions, but also you could lose your shirt. Some even have plants (called shills) that will even help to bid the price up or make sure it doesn’t go below a certain minimum that they have set.
A lot depends on the auction and how many people attend. Some have bargains and many don’t - depending upon the makeup of the group, how well it was advertised, etc. Some even have “bait” that they advertise to bring the people out hoping that if they don’t get what they came for that they will bid on something else.
As far as doing the “due-diligence” that is required, you need to look at ways to do it quickly without a lot of expense, time and energy - while still not cutting corners. I detailed some of how to do that recently over on the Cash Flow newsgroup, but am not sure of the links right now. I’ll look for them a little later.