Florida teen buys a house for $17,500 in Port Charlotte (Cape Coral: short sale, foreclosures)

[TamRE]

Here is the web site for the Charlotte County property auctions if you want to read more about it and how it works. https://www.charlotte.realforeclose....&zmethod=START

[max.b]

Originally Posted by HarborRat

I think many of these sub $20k house auctions are tax sales by the county. The county is just looking to get the owed back taxes plus expenses. I'm pretty sure the county must return any "profit" beyond that to the previous owner. Same goes with foreclosures on houses that had equity, the bank can only keep what they were owed and return the rest to the previous owner.

So in these cases, the "seller" really doesn't give a damn. Break-even is easier for them. In fact, many times the buyer IS the previous owner or family member, they already know what is on the inside.

With foreclosures and short sales, the bank is owed more than the property can be sold for. Otherwise, it could just be a regular sale. So it's in the bank's interest to try to sell for as much as possible.

[max.b]

Originally Posted by TamRE

Here is the web site for the Charlotte County property auctions if you want to read more about it and how it works. https://www.charlotte.realforeclose....&zmethod=START

Do they let people inspect the properties before bidding? (I couldn't find an answer on the web site)

[Harbor Hopper]

Originally Posted by max.b

Do they let people inspect the properties before bidding? (I couldn't find an answer on the web site)

No. That's why i mentioned earlier the high risk involved.

[max.b]

I'm guessing people break into the houses, if unoccupied, or pay the current occupants to inspect their houses, right?

[HarborRat]

Originally Posted by max.b

With foreclosures and short sales, the bank is owed more than the property can be sold for. Otherwise, it could just be a regular sale. So it's in the bank's interest to try to sell for as much as possible.

In those cases the bank already wrote off the loss, any sale is a win. In those cases they also 'normally' allow viewing the inside, list it with a realtor, and even do some repair work on some. My house I'm living in now was bank owned, and I had the opportunity to inspect. You are trying to lump too many scenarios into one group. The "unviewable, hidden" deals are normally like that for a reason. You don't get something for nothing, trust me.

Like I said, many (probably most) of the CHEAP houses are tax deed sales. I bet they are kept quiet to allow the owner one last chance to pay the bill. My advice to you, if you want to learn more, is to register on the bidding site and see how it works. Keep track of how many (how few really) actually make it to auction. Most of the auctions I am interested in never make it to auction day, the bills were "paid" first, either by the previous owner or the bank.

[HarborRat]

Originally Posted by max.b

I'm guessing people break into the houses, if unoccupied, or pay the current occupants to inspect their houses, right?

My sister and nephew are visiting this week and she is interested in buying down here. A good friend's house was foreclosed on 5 years ago, very nice house. After my friends told her of the upgrades they did to the house before the bank foreclosed she was interested in seeing it. The "for sale" sign just finally went up last week. We stopped at it on the way back from dinner last night, walked around the house to show her the new lanai and huge pool...long story short, the rear sliding door was wide open so we gave her the tour. When we found a room full of contractor's tools we left and locked up. This house will be listed and have an agent to show it...only the crap houses are sold as-is, sight unseen.

Point of this story is yes, you are right. If someone wants to look inside a house they have ways. My friends even have the keys to the front door, so there are many ways. A 17 year old with a realtor mother has many, many ways unavailable to you. I've seen the insides of many of these "private auction" houses before deciding to bid or not. Lets just say I would not recommend buying a house without seeing the inside first unless the price is still low enough for a total gut and rebuild including mold removal. Most have been empty and untouched since hurricane Charley.

You are asking these questions because you are skeptical....you should be!

[max.b]

Originally Posted by HarborRat

My sister and nephew are visiting this week and she is interested in buying down here. A good friend's house was foreclosed on 5 years ago, very nice house. After my friends told her of the upgrades they did to the house before the bank foreclosed she was interested in seeing it. The "for sale" sign just finally went up last week.

Did someone else own the house in the meantime, or did the bank really wait 5 years to try to sell the house?

[HarborRat]

Originally Posted by max.b

Did someone else own the house in the meantime, or did the bank really wait 5 years to try to sell the house?

They waited....it has been empty. They want to get every penny out of the "good" houses. Funny thing is my friends have been receiving tax bills and the like the whole time, like it was still their house. The bank waits till the time is right, either for the write-off or the sale. They work the system too .

[mr&mrssunshine]

I am scheduled to clsoe on a bank owned home the end of this week....no one has paid the water for over 4 years and it has amassed nearly $3000 in penalties !!! The banks dont care about the minutia, as stated by HR the banks have already written the debt off.

as for 'viewing' foreclosed/bank owned etc properties , if you enter without the owners permision you are trespassing and breaking and entering ie committing a crime.....I belive there was a TV programme a while back where a crew hid inside a home and 'caught' a number of potential buyers/investors/realtors in the act....you do so at your peril