Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
After following foreclosure auctions/flipped properties for quite some time, I am going to be making my first purchase soon when the right property comes about. I pretty much know the entire process, but there is one aspect I am unsure of.
In California, I know they require cash/cashiers check to pay for the property acquired at the auction/court steps. What I would like to know is, do you need to have the exact amount in cashiers checks handy as soon as you win?
For example: If the winning bid on the property I acquire is $102,200, do I need to have exactly $102,200 in cashiers checks? Since the winning bid is always unknown until you've actually won the property, I feel it would be a huge pain to go to the auction with (1)$75,000 cashier check, (5) $1,000, (10) $100, etc.
Is this how it is done, or is only a deposit required and the remaining amount due within 24 hours or etc?
Is this how it is done, or is only a deposit required and the remaining amount due within 24 hours or etc?
This is how it works for someone who they have experience with, and I know some people who went through this process first time and had few different cashier checks to make sure they are going to be able to got the total amount they need the way you described above.
Are you trying to get a house for yourself or for resale?
It will likely depend on the particular auction. I've been to auctions where the full price was to be tendered in cashier's checks (using multiple checks, with any overage refunded within a certain time), and I've been to auctions where you had a short time to submit the full amount. Just check on the particular requirements.
By the way, I think there are better ways to buy property than trying to buy a foreclosure on the courthouse steps. In my area, at least, it's usually better to let the bank take title first--and then buy it directly from the bank. Banks in my area have oftentimes sold for a lot less than what had been owed on the mortgage--which is usually the minimum you'd be paying at a foreclosure auction.
Are you trying to get a house for yourself or for resale?
Yes, for resale. I've been following the business for quite some time and even had some experience with a flipping company. Being that it is a sellers market in my area right now, these guys are making killer returns and 95% of homes are in contract within 7 days.
Quote:
Originally Posted by jackmichigan
By the way, I think there are better ways to buy property than trying to buy a foreclosure on the courthouse steps. In my area, at least, it's usually better to let the bank take title first--and then buy it directly from the bank. Banks in my area have oftentimes sold for a lot less than what had been owed on the mortgage--which is usually the minimum you'd be paying at a foreclosure auction.
In my area it goes both ways -- I would say 25% of the time the minimum bid is set well below the owed mortgage, 10% of the time it is default amount, and 65% of the time the auction is either postponed or cancelled.
Yes, for resale. I've been following the business for quite some time and even had some experience with a flipping company. Being that it is a sellers market in my area right now, these guys are making killer returns and 95% of homes are in contract within 7 days.
People who do this on daily basis talks about risks like you don't have a chance to see the house until it's yours. Some properties are in OK shape and some not. In our area flippers pretty much cover all transactions (auction) which means nobody from outside will be able to buy anything in more or less good shape without investing a bunch of money.
People who do this on daily basis talks about risks like you don't have a chance to see the house until it's yours. Some properties are in OK shape and some not. In our area flippers pretty much cover all transactions (auction) which means nobody from outside will be able to buy anything in more or less good shape without investing a bunch of money.
This is the risk you take with auctions -- but also explains why you are receiving such a discount.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
