Quote:
Originally Posted by petsetc
FWIW - here's the little I know.
A house for sale through foreclosure is usually auctioned on the court house steps and advertised via publication in local papers. Usually, the bank that holds the mortgage is the opening bidder, opens somewhere around the outstanding mortgage amount, which usually makes them the "winner".
Prior to the sale on the courthouse steps, no entry or inspection is available. You buy as a pig in a poke.
Then the property is off the market until the bank, HUD, or some other entity puts it up for sale as an REO (real estate owned property. At this point, the transaction is pretty much the same as any other purchase except the selling entity may have some additional "rules and restriction". Also, the real estate commission on an REO is usually fixed lower and less motivating for the agents.
As with any home purchase, you need a thorough title search for liens or other debts that may encumber the property.
Hope that may help.
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We never bought at auction, but worked with the banks and realtors. Banks are not in the real estate business and are willing to sell to clear their books. Locally we worked thru Buddy Clark with Re-max. He handled the foreclosures for HSBC. The houses sold at auction never interested me because people who watch HGTV think they can make a fortune. They over Bid and end up losing their Shorts. I inspected every house I've ever bought. We always got a Title Search and after the first few years always made all cash offers. We never flipped in Florida, and worked for Buddy as contractors. I am now happily retired and watch HGTV for amusement. Len