Any tips for purchasing a Foreclosure Home at Auction?
Especially on the statutory right of redemption, After I pay for the home, the previous owner can get it back from me? What happens to the money I paid?
And how much can a pending lien be? Can a lien go into the hundreds of thousands? For example if I buy property at 90k, can the home have a lien for 200k and then I am responsible for 290k? I know I can look at the county records but was advised that since I am doing search myself, it’s possible to miss some things.
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Comments
Tip #1: Attend at least 30 auctions (on 30 different days) to observe the process.
Tip #2: Take special note of the professional investors. See how much they bid and how they bid. Make sure you recognize them on sight because if they start bidding on your house you’re in for a real battle.
Tip #3: Educate yourself on the laws and regulations of foreclosure sales. Learn what must be disclosed and what need not be disclosed.
Tip #4: Assume you will need a minimum of $30,000 to effect repairs.
1) Redemption means the previous owner must compensate you by buying the house back from you and clearing the indebtedness. So you would get your money back.
2) You are responsible for what you bid. The lien holders can go after the original owner, but not you. Remember that most auctions are cash only, so bring plenty.