Info on Foreclosures - Posted by Carly
Posted by Carly on February 28, 2001 at 23:34:42:
Help! I accidentally found out about a local IRS foreclosure auction and ante’d up the money for the initial IRS “good-faith” contract. Assured by a REI “friend” that few investors show up for these auctions, I felt really good about my chances of getting this property. On the day of the auction, about 50 investors from 15 states showed up, and the price started at my contract price, soared past the $65-70K that I was willing to pay for the property, and up to 147K, 12K over the fair-market value. The foreclosed owners bought it back (although their assets had been claimed by IRS), came up with their 15% down-payment, but defaulted on actually coming up with the cash for the mortgage (no kidding!) The backup-bidder turned down the offer because she knew she was over FMV. Needless to say, the IRS is going thru the motions again, but I hate to lose another day’s work and all my dreams again!
Does this type of thing happen often? This was my first REI experience and it was disheartening. I was thinking of about $70K to purchase, about $15K to fix-up, and selling below FMV around $119K for a quick flip. Foreclosures in my area list for minimum $80K up to $200K! Where can I get of list of foreclosed homes that no one bought and that are supposedly open to “any offer?” I have about 30K to play with, and an excellent credit rating. I’d like to start with cheaper properties that I can buy with small or no loan and build with profits from that one. Any ideas would be greatly appreciated. Thanks!