On the show Property Wars, they always say that the bidders cannot look into the house. They show that the windows are covered.
Is this the way most (all?) bank auctions are handled or is this just a set up for the show?
The following is from here:
===================== Johnny asks (on January 24, 2013):
Why are they not allowed to visually inspect the houses INSIDE before they bid on the houses. Is that law? is that even real? Seems kinda nuts to purchase something without being able to visually see inside?"
Marty Boardman (on January 25, 2013) replies:
Johnny, yes, it?s the law. The bidders don?t own the houses yet, nor does the bank. Until the auction takes place and a trustee?s deed is granted to the highest bidder the property belongs to the homeowner. To enter the house without the owner?s permission is trespassing.
And yes, it?s nuts to purchase something w/o inspection. It?s a high risk/high reward proposition for the auction bidder. That?s the game we play. ======================
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Lots of interesting information on that page (and in the comments).
See also:
This is similar to what happens on storage wars.
I've often wondered why, when a storage locker goes abandoned (unpaid), that the storage company doesn't automatically get ownership of the contents, to do what-ever they like with the contents, to open the locker, rummage through the stuff, take what's valuable for themselves, or put it up for sale themselves, throw away what-ever they want, clean the locker out and make it available for the next customer to rent.
But for some reason it doesn't work that way for storage lockers, and (apparently) also not for homes that have been forclosed on - but still have people living in them?
I would think the laws on foreclosures could also vary from state to state. I don't see why, at least in some states, the bank could not have a conditon of granting the mortgage in the first place that says that in the event of a foreclosure the bank is allowed to have reasonable access for prospective bidders.
But then in the age we live in, where everybody who gets foreclosed is a victim and the banks are villains, who knows?
In the case of storage lockers, I was wondering the same thing. There must be laws, again at least in the states where the shows are shot, that say it has to be a public auction. Otherwise, you would think the normal abandoned property rules would apply. Like if a renter leaves stuff behind, a landlord typically has to make a reasonable effort to contact the renter, give them notice etc. Period varies, but AFAIK, after about 30 days or so, landlord can do whatever with the property.
-distorted-view-of-reality/%2BProperty+Wars+-+Are+windows+usually+covered+for+house+auction+sales%3F+bidders+cannot+look&hl=en&gbv=2&prmd=ivns&strip=1
Thanks, but...
That addresses the fact that they can't (legally) go inside to inspect them. However, on the show, the windows are always covered completely, whether the house is a ramshackle shed or a Taj Mahal. Drapes drawn or covered in sheets or newspaper. The only inspection available is the exterior.
Now, I understand the logic somewhat. If they could peer into the windows of an fancy, upgraded house the bids would be higher and the sellers would end up with more money. However if they'd peered into a house that had been stripped or was a wreck, they would bid very low, if at all. So you can't allow peeking into a nice house and cover the windows on a shack because everyone would know why the shack's windows were covered.
So my question still remains: In real life, do they cover the windows of all empty houses that are up for auction or is that just for the show, or just for the Phoenix market or does it vary by location or auction company or...?
I have purchased a few houses at auctions and I have always been allowed to go inside and look around even check out the attic and crawl space if any. usually it is an hour or two before the auction or if it is a mass auctio n certain times are set asaide for a quick inspection and then you bid a fe w days later. No look bidding is just dumb.
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