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.
