patrick.net

I guess this property is in CA? Is this a REO auction, short sale auction, or Trustee Sale auction, or you don't know? How many loans does the property have? How many liens does it have? How much do they owe in back taxes?

If the property is in CA and it is a trustee sale auction, you have to pay cash for it. If the property is all fixed up, are some buyers willing to pay more than $475k after it is renovated? Rule of thumb for paying at auctions has gone out the window since last year. Investors will pay whatever price as long as they believe they can make a profit on it. Sometimes, you will have an end buyer that will beat out all the investors because they buy to live in it, not to make a profit.

Oldie but goodie: http://www.santacruzsentinel.com/localnews/ci_15573894

Straw Man says

Oldie but goodie: http://www.santacruzsentinel.com/localnews/ci_15573894

That's what you get for not knowing what the hell you're doing. It's not the lender or the auctioneer's fault.

E-man says

I guess this property is in CA? Is this a REO auction, short sale auction, or Trustee Sale auction, or you don't know? How many loans does the property have? How many liens does it have? How much do they owe in back taxes?

If the property is in CA and it is a trustee sale auction, you have to pay cash for it. If the property is all fixed up, are some buyers willing to pay more than $475k after it is renovated? Rule of thumb for paying at auctions has gone out the window since last year. Investors will pay whatever price as long as they believe they can make a profit on it. Sometimes, you will have an end buyer that will beat out all the investors because they buy to live in it, not to make a profit.

Yes it's a trustee sale. There are 2 loans on the house, a 1st and 2nd that total 502k with fees. There are no additional liens, but I am unsure about back property taxes.

The 475k is my guess if it was in standard flip condition. They could go bananas with the renovation and get more, but the return on investment probably not as good.

robertoaribas says

cash or go home. you have been wasting your time speculating how to get this home as a deal.

I've seen lenders that will approve you for a loan then buy the house at the trustee auction for you if you provide the down payment and a fee. The loan terms are pretty shitty (which is why I'm asking around) but they do exist.

robertoaribas says

Outside of some one off like that, you are asking to get completely screwed, as a newbie trying to swim in those shark infested waters.

Thanks,

I know this is true. In the end, even if I'm not willing to take the risk it's not a bad thing to better understand the process.

Not sure what its like know (things change quickly) but the hose I'm in now - it reverted to the 1st lien-holder at auction (no one bid on it) and I started negotiating with them directly the next day. They were happy to get it off their books and not have to list it with a real estate agent. If its a smaller bank, and you can get a hold of the right person, you may be able to shake it loose, but its a long shot. Good luck.

EastCoastBubbleBoy says

Not sure what its like know (things change quickly) but the hose I'm in now - it reverted to the 1st lien-holder at auction (no one bid on it) and I started negotiating with them directly the next day. They were happy to get it off their books and not have to list it with a real estate agent. If its a smaller bank, and you can get a hold of the right person, you may be able to shake it loose, but its a long shot. Good luck.

I hope it goes that way, this scenario seems like best case to me. I'm not looking to get a super steal, I just don't want to pay flipper markup on a renovation that I will want to redo half of it.

Fifteen years from now people will see tan/grey brick pattern tile backsplashes and be like "that's so 2010's"

EastCoastBubbleBoy says

Not sure what its like know (things change quickly) but the hose I'm in now - it reverted to the 1st lien-holder at auction (no one bid on it) and I started negotiating with them directly the next day. They were happy to get it off their books and not have to list it with a real estate agent. If its a smaller bank, and you can get a hold of the right person, you may be able to shake it loose, but its a long shot. Good luck.

So, how did you find out the bank and the POC? Did you simply talk to the representative at the auction?

Public records. Plus the bank, being primary lienholder, was listed as the plaintiff in the foreclosure case. (ABC Bank vs. home-debtor in arrears)

To be frank, buying at auctions is super risky. If you really want to get into this, go work for a pro, learn the game, then make your move.

My favorite story is the insider who had the responsibility to go and drive by a property on the day of the auction. Once he drove by to find the property IN FLAMES that morning. So he went to the auction and watched as people bid--and someone won--this wonderful, flamed out property. Yep, it's all their's, as-is, no warranty.

murakami says

To be frank, buying at auctions is super risky. If you really want to get into this, go work for a pro, learn the game, then make your move.

My favorite story is the insider who had the responsibility to go and drive by a property on the day of the auction. Once he drove by to find the property IN FLAMES that morning. So he went to the auction and watched as people bid--and someone won--this wonderful, flamed out property. Yep, it's all their's, as-is, no warranty.

Nice!