Sheriff Sales (Camden County) Foreclosure auction? (bank owned, real estate market, foreclosures)

[NatasNJ]

Has anyone gone to or been involved with the weekly Sheriffs sale in Camden NJ? I was interested to learn how they work so I have read up on it online. I was hoping someone on here may have gone through this or know a lot about it and can offer some basica impressions or opinions on the auctions.

[davenj08]

i haven't been to one but was interested in one last year. but then i learned that one can not see the house from inside before making an offer in the auction. that killed the deal for me.

[NatasNJ]

Is that true for all foreclosures? I would think if the house was vacant you could probably get in prior to the auction. Maybe not.

Yeah can't see myself buying a house without AT least doing a visual inspection by myself. Scary enough to not have a real inspection on top of that.

Unless of course you get a STEAL!

[AsherDoodle]

Originally Posted by NatasNJ

Is that true for all foreclosures? I would think if the house was vacant you could probably get in prior to the auction. Maybe not.

Yeah can't see myself buying a house without AT least doing a visual inspection by myself. Scary enough to not have a real inspection on top of that.

Unless of course you get a STEAL!

Depends on the type of foreclosure sale it is. If it's a sheriff's sale or foreclosure auction (which is where you'll find the cheapest prices usually), you generally won't have an opportunity to see the interior of the house.

Bank owned, HUD and REOs you will most likely be able to see the house just like any other house on the market, but they won't necessarily be that much of a bargain.

You might want to look for some lis pendens, pre-foreclosure properties.

[Amazonas]

Has anyone attended any auctions? Can anyone elaborate further in how it works and what are the payment procedures? How cheap can you get these homes for and all that stuff? I downloaded a list from the Sheriff's office in Monmouth County, but haven't done it yet since I'm waiting for Spring to arrive.

[NatasNJ]

I plan to attend one next week.

Where do you find a pre-foreclosure list?

[AsherDoodle]

Originally Posted by NatasNJ

I plan to attend one next week.

Where do you find a pre-foreclosure list?

You can generally get a Notice Of Default or lis pendens list monthly at the County Clerk's office. Otherwise, you can purchase lists online, but it's better and cheaper to get the info directly from the County if possible. If there is a local RE Investors club locally, they may have the info as well.

You's be contacting the homeowner directly and trying to work out a deal with them if you go that route.

[Amazonas]

Originally Posted by NatasNJ

I plan to attend one next week.

Where do you find a pre-foreclosure list?

You don't have to pay for such listings, they are free an it gets updated weekly.


Monmouth County Sheriff Kim Guadagno -

[JamesBoyer]

I have purchased homes at Sheriffs sale.

It is not something you should do if you are not savvy considering the local real estate market for the area the home you intend to bid on is in.

You do not get to inspect the home you wish to bid on before the auction. Even if the home is vacant (most times it will not be, and it will be your responsibility to evict once you own the home) if you enter it, you are breaking and entering and could go to jail for it even if you don't need to break to enter.

You need to do a lean search on the home you want before hand, if it is the second mortgage that is foreclosing, if you purchase at the sale, you are still on the hook for the first mortgage.

Typically you need to have cash or a cashiers check = to 10% of the amount you bid up to at the auction, and be prepared to hand it over to the sheriffs representative within minutes of the bidding ending on the home you just purchased.

Usually you must close on the home you just purchased within 30 days. Meaning the other 90% is due on that day.

In most cases you will not be able to get a normal mortgage to complete the purchase of the foreclosure home. (They cannot do a real appraisal).

In most cases there is no 3 day right of rescission, if you back out after the auction, you will likely be banned from any further auctions, they may keep your 10% down, and there have been cases where people have been fined as well.

If your cashiers check bounces, they will prosecute you, and you could spend time in jail.

The other thing to consider, is that purchasing a home at Sheriffs sale can be a great opportunity, but also a great risk. I have purchased homes that needed $20,000 in repairs, but also have purchased homes that needed $80,000 in repairs. I have an advantage though, I know what different things cost to repair, I can go into a home with vision of what it could be, and I know what improvements pay, and what improvements don't.

Last thing to remember. There are some very savvy people at the auctions. For the auctions I have been to, there were several groups who came every month, and would purchase anywhere from 3 homes to 20 homes, depending on what was availible and if they could get the prices they wanted. At least one of the people I knew of like this, had a team of workers that he could bring into the homes, and get the work done fast, and for a much lower cost then most people could, so he could pay more for the homes and still make a great profit.

If you want to play in this arena do your homework, attend 2 or 3 sheriffs sales, go to your county recorders office, and learn how to do title searches, drive around and actually look at the homes that people purchased at the auctions you have attended, you will get an idea real fast how bad some of these places are, and the investor still will likely make money.

If you are going to have to hire contractors for most of the work your purchase will need, I hope you are planing on using the home as your primary residence, because by the time you are done, you will likely have as much into the home as if you had purchased a non foreclosure.

[Amazonas]

Originally Posted by JamesBoyer

I have purchased homes at Sheriffs sale.

It is not something you should do if you are not savvy considering the local real estate market for the area the home you intend to bid on is in.

You do not get to inspect the home you wish to bid on before the auction. Even if the home is vacant (most times it will not be, and it will be your responsibility to evict once you own the home) if you enter it, you are breaking and entering and could go to jail for it even if you don't need to break to enter.

You need to do a lean search on the home you want before hand, if it is the second mortgage that is foreclosing, if you purchase at the sale, you are still on the hook for the first mortgage.

Typically you need to have cash or a cashiers check = to 10% of the amount you bid up to at the auction, and be prepared to hand it over to the sheriffs representative within minutes of the bidding ending on the home you just purchased.

Usually you must close on the home you just purchased within 30 days. Meaning the other 90% is due on that day.

In most cases you will not be able to get a normal mortgage to complete the purchase of the foreclosure home. (They cannot do a real appraisal).

In most cases there is no 3 day right of rescission, if you back out after the auction, you will likely be banned from any further auctions, they may keep your 10% down, and there have been cases where people have been fined as well.

If your cashiers check bounces, they will prosecute you, and you could spend time in jail.

The other thing to consider, is that purchasing a home at Sheriffs sale can be a great opportunity, but also a great risk. I have purchased homes that needed $20,000 in repairs, but also have purchased homes that needed $80,000 in repairs. I have an advantage though, I know what different things cost to repair, I can go into a home with vision of what it could be, and I know what improvements pay, and what improvements don't.

Last thing to remember. There are some very savvy people at the auctions. For the auctions I have been to, there were several groups who came every month, and would purchase anywhere from 3 homes to 20 homes, depending on what was availible and if they could get the prices they wanted. At least one of the people I knew of like this, had a team of workers that he could bring into the homes, and get the work done fast, and for a much lower cost then most people could, so he could pay more for the homes and still make a great profit.

If you want to play in this arena do your homework, attend 2 or 3 sheriffs sales, go to your county recorders office, and learn how to do title searches, drive around and actually look at the homes that people purchased at the auctions you have attended, you will get an idea real fast how bad some of these places are, and the investor still will likely make money.

If you are going to have to hire contractors for most of the work your purchase will need, I hope you are planing on using the home as your primary residence, because by the time you are done, you will likely have as much into the home as if you had purchased a non foreclosure.

Thanks for the tip. Now, if you're unable to enter the house and inspect it, then how do you asses the condition of the property? What are the tell tail signs that one must take into consideration when approaching this method?