Posted by Carly on March 01, 2001 at 23:31:33:
Thanks for the info–I’ve got alot to learn and a long way to go. I’ve been wanting to do this type of thing for years but never took the plunge, and when I did, it was disappointing. But I survived it to try again when the right property presents itself. Thanks for the help!
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!
Re: Info on Foreclosures - Posted by stan
Posted by stan on March 03, 2001 at 02:49:18:
auctions and courthouse sales are not the way to get the best deals on foreclosures…all you are doing in most cases is setting the market value for the bank …youd be better off not to bid and let the bank buy it for peanuts…then you can buy from the bank at 50cents on the dollar.
also there are alot of properties that banks take control of “in lieu” of forclosure…finding these is not difficult…and remember banks arent in realestate business so they like to sell quick and cheap…good luck
Re: Info on Foreclosures - Posted by Oscar
Posted by Oscar on March 01, 2001 at 21:13:22:
Hey, your not the only one with the first time REI blues. I just “purchased” a house through auction (a lender foreclosure) and the day after I put my money down, the trustee called me and said the owner will contest the sale, and has legal action against the auctioneers because a “receptionist” told him the auction was the day after its actual date. So it looks like my property will not make it through ratification and I simply have lost all the time (and some money for title search & etc) on this property.
I have a suggestion for you though, since you are just starting like myself, I’d try to goto the local bank auctions instead of the IRS ones. Now, I cant say anything bad about the IRS ones because I’ve never attended one, but the process I just went through with bank REO’s was pretty simple, straightfoward, and all kinds of properties.
Good Luck
Re: Info on Foreclosures - Posted by Dave
Posted by Dave on March 02, 2001 at 10:28:25:
How do you find out about these auctions? Are they frequent?