buying a house at an auction or a short sale/foreclosure
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2010 Jan 15, 2:13am 1,804 views 3 comments
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RayAmerica
2010 Jan 15, 3:29am
I have purchased a number of properties over the years at auction. Buying in this manner has never been for amateurs let alone in a very difficult and unpredictable real estate market such as this one. Also, there are a high number of vacancies in rental properties right now (in most markets). Being you have cash, there is less risk. However, securing homeowner's insurance on vacant properties can be very difficult and expensive as well. If you buy at auction (Sherriff Sale) at least in my area, you do not have access to the inside prior to placing the bid. Bank owned are much safer, but make sure you get the property fully inspected and make your the inspection results allows you to walk away if you are not satisfied with the results. Short sales are a nightmare. You'll submit a purchase agreement and will wait usually 35 business days before you even get an answer .... and the answer might be "no." If they say yes, they'll want you to close yesterday. This entire market is a real mine field. Proceed with extreme caution. I no longer own any rental properties and have no intention of buying any in the near future.
Hi Ray
Thanks for the info. Do you mind me asking where you were buying and renting your rental properties?
Thanks
Hi There,How does one go about buying a house at an auction or a short sale/foreclosure? How do you find out about homes before they become REO and enter the MLS? Are these transactions still recorded for public record to see what they sold for at an auction or before they hit the MLS?I am considering taking my nest egg and buying a house for all cash with it as an investment and turn it into a cash flow positive rental. Maybe doing this a few times instead of buying a house for myself to live in and continue renting.I keep hearing about these great deals. How do I find them?
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