Trustee Sales - Access to Funds - Posted by Susan N.CA

Posted by John J. on May 09, 1999 at 24:28:38:


When you show up at the Trustee Sale, you generally need to show that you have certified funds with you for a deposit ($5,000 or whatever the Trustee decides). When you are the successful bidder, you give the deposit to the Trustee or his attorney/representative. You will forfeit this if you don’t show up with the remainder of the purchase price within a specified timeframe, such as 24 hours. I usually bring a cashier’s check made out to “Bearer” to the sale. This is equivalent to bringing cash. If the advertisement for the sale does not specify the amount of the deposit then you can call the Trustee’s office and ask.

Many areas have realtors or others who will do all the leg work. I work with a realtor who does this full time and works with many investors. He will fax me a list of all the properties that come for sale the following week that match my criteria (no dirty title, initial (bank’s) bid less than 60% of market value minus fixup and reselling expenses). He charges me a fee of $1,500 whenever I am the successful bidder. You can find these folks by attending sales and asking others who attend or going to the county recorders office and talking to the people who are doing title research.

One of the reasons that houses sell so cheap at the trustee sales is that there are so few people who qualify as buyers - i.e.: have enough cash laying around to buy at the spur of the moment. If the credit lines on your credit cards add up to enough then you can take out cash advances. I’d shop around for home equity lines of credit.

Some of these houses need a lot of work. Often you won’t be able to see the inside and there is no buying ‘subject to inside inspection’. You will have to allow for expenses after the sale, which might include evicting the previous owners. Just don’t go in over your head.

Another option is to find a private investor to work with for a spit of the profit. You might set up a partnership or LLC beforehand to spell out the terms.

Good luck. This is an ideal time of your life to be able to do this, if you can work it out financially.

John J.

Trustee Sales - Access to Funds - Posted by Susan N.CA

Posted by Susan N.CA on May 08, 1999 at 21:07:49:

I’m interested in investing in foreclosures. It looks like there are some great deals in my area at Trustee Sales. My questions are these:

  1. Generally what are the payment terms? Can I use my cedit cards?
  2. I have two homes currently that both have between $70k and 80k equity in each. Recently I quit my job to tend to my children and my husband has been self employed for under two years. I currently do not have access to a home equity line for cash and don’t think I can attain one without income verification. Any suggestions as to how to “tap” my equity?
  3. If the auctions are certified funds only, how do you know how much to make the check(s) out for?
  4. Is there an easier way to check title on out of area properties without making a trip up to that county’s county recorder’s office?
    Any help would be greatly appreciated.

Re: Trustee Sales - Access to Funds - Posted by Rob

Posted by Rob on May 09, 1999 at 23:32:26:


Since this is a trustee sale in N. Calif. , the amount to buy the property is the price which is owed and whatever is bid up to. This is a “As Is” buy and all cash. If no one is around to bid, be cauious. It may not be a good deal. Very seldom does a beginner beat the professional in this game. And if they do, they will pay more than expected.

You must determine if the loan that you are trying to buy is a 1st, 2nd, 3rd, or 4th loan etc…
If you make a mistake, it will cost you dearly. I seen it happen a few time.

My suggestion is that you go down to where they are auctioning the property and watch the professionals there. Believe me, they will hang around if there is a good deal. If you want to see more action, go to Oakland county courthouse on Tuesday around 12:00 P.M. Where you live in the south bay, the action is less. Check it out!

I hope this help,