Learn of any special deed/title restrictions benefiting the current
owners. In some areas I believe a person can recover their property lost
to a tax sale for a period of up to two years. Knowing in advance might
save you from sinking too much cash into something not 100% yours yet.
Yeah...be dam'ed wary. There can be all kinds of other (besides tax)
unsatisfied liens, unproved title issues, even possible environmental or
other things you can get into.
While sometimes it's as simple as a single homeowner in default, usually
by the time it gets to a tax sale there are a myriad of problems that
have built up over a long period of time and may be extremely convoluted.
I'd strongly suggest consulting local attorney and some real estate
folks in the area who have some experience for some help protecting
yourself rather than just jumping in on your own.
Have you rehabbed a house, often a junk is better torn down. Getting a
junk to code can mean redoing everything. Talk to an inspector or
someone in your area that does it. I would want to see what I am
buying and know local codes.
If you havent bought at auction before and you havent rehabbed before
you may just learn a very expensive lesson.
You need to know the hidden costs in the auctioning process
particularly after the purchase.
Next you need to know how much you will be putting into the fix up
Then you need to know what the property will be worth after the
Keep in mind that properties are not worth what they were just two
replying to Duff2, caroline wrote:
Here are few things to keep in mind while buying a foreclosed property:-
1. Get an approval from a lender who has verified your income and assets.
2. Do some research on foreclosed properties and recent trends with a property
value in that area.
3. Do investigation by self and make your offer on agreeable outcomes
4. Determine potential repairs and their costs
5. Remember that you have the high ground in arrangements with respect to the
bank paying closing expenses and making repairs.
On Monday, April 3, 2017 at 7:44:12 AM UTC-4, caroline wrote:
Besides the fact that the thread is 9 years old, the poster also said
that the properties they are considering are being auctioned at the
court house. That is the final act of the foreclosure process and
you don't have the option of negotiating with the bank about closing
costs, repairs, or anything else. Also, being qualified for a mortgage
is pretty much useless, you need cash at the auction, you typically have
to pay off the rest of the full auction price within days thereafter too.
Also be sure what your state laws are about other encumbrances. In
Florida most of these will be wiped out in the auction but be sure.
Tax liens will still survive the auction and there may also be code
enforcement liens that survive. Usually mechanic liens and other bad
paper are wiped out in the auction and the people with surviving paper
will have to pick over the proceeds.
Bear in mind, the bank may open the bid with what they are owed and
you might not see that bid until you match it. This is like Ebay. High
bid is hidden until it is matched.
HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here.
All logos and trade names are the property of their respective owners.