Wednesday, April 24, 2013

BUY AT THE FORECLOSURE AUCTION


I am attending the foreclosure auction at the Courthouse this morning.  I want to reconfirm it is still a good way purchase property.  Purchasing a house at a foreclosure sale is tricky, however…“As Is” can involve a lot of risk.

On the other hand, my specialty, purchasing and selling residential lots, is much simpler:  Determine if it is in a great location.  Check out how expensive the site preparation is likely to be (Clearing, fill dirt, etc).  Examine the numbers.  And get a good attorney to work with you (I am meeting with one this evening).

There are four lots going at auction in May. Three decreased in value our property appraiser’s estimation.  One increased!

Here are some quotes from Wikipedia and RealtyTrac…who are getting smothered with bad reviews about their “Free 7 day Offer"!

Wikipedia:“In the case where the remaining mortgage balance is higher than the actual home value the foreclosing party is unlikely to attract auction bids at this price level. A house that has gone through a foreclosure auction and failed to attract any acceptable bids may remain the property of the owner of the mortgage. That inventory is called REO (real estate owned). In these situations the owner/servicer tries to sell it through standard real estate channels.”

RealtyTrac: “A reasonable purchase amount at auction is at least 20 percent below full market value, and much better deals are often possible. Other factors to consider are the rate of real estate appreciation in the area and the potential for increasing the property’s value by making repairs and improvements.”
If you would like me to help you find a good residential lot that fits your home site or investment needs, please leave a comment here and I will contact you.  Same goes if you would like more details about the four lots being auctioned in May or have some experience with purchasing lots at auction you would like to share.

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