john asked:
I’ve heard about local (not infomercial ads) sheriff’s auctions and foreclosures that for some reason aren’t regularly advertised. Do you think you can get good deals with these? has anyone heard of this?
Tags: Ads, Forclosures, Foreclosures, Good Deals, Online Auctions
January 19th, 2009 |
Tags: Ads, Forclosures, Foreclosures, Good Deals, Online Auctions
January 21st, 2009 at 9:15 pm
Sheriff auctions are advertised (by law) – usually only once – so you have to be looking in the paper – or contact the Sheriff’s office, they’ll tell you when the next auction will be held. And yes you can get some good deals on properties. But it is an Auction so the price is determined higher or lower by the bidders.
Foreclosures – the bank is wanting to make as much money as they can – so you don’t always get a great deal – they are going to try and sell it at market price. And usually the house is in pretty bad shape which means more investment on your part.
January 22nd, 2009 at 2:21 pm
I would at least do a preliminary title search, there may be liens on the property…
January 24th, 2009 at 5:35 am
Hey John, I see you are interested in foreclosures, check out this site. It may best answer your questions.
January 24th, 2009 at 6:13 am
Hi! Please post my answer to the world! Too many tv shows, real estate gurus selling books and tapes that don’t tell the whole story!
There are different types of sales that might be on the court hose steps. Some estates end up there after being taken by the state for one reason or another. The most recognized is the tax sale, for back taxes.
Now, we will assume no other liens or encumbrances are file on the property, because if there were, they would pay the tax and foreclose to protect thier collateral interest. Let’s say I don’t pay my taxes and you buy my house and I’m off on a cruise around the world and know nothing of it, or I did and didn’t care. Why would I not care…
You buy the house andwalk with a Sheriffs Deed. Now you see that the roof needs to be replaced, needs new cabinets, carpet and while you’re at it just paint it too. I get home a year later and you are living in it or you have a sign in the yard to sell it or someone you sold it to is living there. I just go down to the court house and use my RIGHT OF REDEMPTION, pay the tax amount, plus fees, plus ten per cent to you and I get my house back! Thanks for fixing it up, I’m not obligated to pay you anything for improvements. Oh, you sold it, well the title company that ran title and insured it will need to caugh up some money to the insured, the buyer of the house, and I get my house back! That’s the tax sale, it comes with a right of redemption for the tax payer in default.
The estate sale, for example by the state, can be a clear sale
ad a good deal.
But in your question you said “aren’t advertised”. All sales at the court house steps are advertised, but not in the real estate section of the local newspaper but in the Legal Notices section. They will give the property address or a legal description, or both, the date and time of sale and what the sale is for.
There are pitfalls to buying a property on the steps, know what rights the “owner” has, if they were contacted, some properties are abandoned, the great grandson of the elderly lady who dies who didn’t pay the taxes, does not even want to make the trip to see the old place and won’t pay the taxes due, yep people do that.
Another draw back to the court house sale, you have only 2 or 3 days, sometimes 5 to pay for the property, the average person just can’t get a loan that fast. They are cash sales, then and there!
Short answer, yes you can get a good deal, it can carry a great deal of risk too. There are easier ways to find deals, generally in better condition, without all that. It’s really too bad that people play on the less fortunate, playing on thier dream of homeownership or desire to succeed and blow up stories of how to get rich, just to sell a book or a set of tapes! There are some good educational materials in real estate, but you won’t find them advertised in a TV program! Just do a little research and be creative with the knowledge you acquire. Good Luck! B