The Treasury auctions are handled by a contractor, whom I have met. They are very skilled and in the auctions I have attended managed to obtain over market bids. My observation is that this bidding frenzy can only be whipped up face to face. Its harder when you cannot play on the other people’s reactions.
I have heard that it can cost between $20k and $50k to foreclose a property (which would be from NOD to REO), but I am no expert on this and others on this site would have more exact numbers. In some states, such as CA, the foreclosure is handled by a trustee, who may or may not be an attorney, but it does not go to court, so would likely be at the lower end of the costs.
I’d like to auction the foreclosures on a website to all the investors out there instead of having them at the courthouse only open to a handful of investors. I’m trying to find the best way to insert my business into this process. I’ve done a lot of research and know quite a bit about foreclosures but still having problems pinpointing the best spot in the process to make this happen. Anyone have any suggestions? Thank you very much.
You don’t say either what type (mortgage, trust deed, tax, Sheriff/Marshall sale, etc.) or what State you wish to do this for.
The biggest issue is that non-judical mortgage/trust deed foreclosure sales are held the way they are, from State-to-State, typcially on the courthouse steps or similar public place, as a matter of legal statute.
The second reason has to do with the transaction transparency of the public auctions vs. those conducted by private enterprises via proprietary sales models (i.e., internet, etc.).
Your question sounds simple enough and you are no doubt eager to find a way to add value to the process, however it sounds like you’ve barely started the research process. Once you’re around the foreclosure world and the businesses that provide services currently, you may have a different take on your idea.
Do some homework on your own, independantly of forums and blogs, go to some seminars, read the books, check out the State laws, talk to experienced experts with 10 or more years working foreclosures, THEN ask if this is something that you really, really want to pursue.
What I was trying to briefly point out is that you need to do what they do, not necessarily work for them. I would also look at the HUD and US Treasury Dept. online auctions. You need to set up your auction systems first, then advertise. They have auction systems. Look at them and add your own twist that would make people interested in you.
Thank you. I didn’t know the US Treasury Dept. did real estate auctions. I’ll definitely check them out. Do you have any idea how much the whole process costs from when they hire the attorney until it gets turned over to the REO office?