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Old 06-10-2012, 05:21 PM
 
Location: Brawndo-Thirst-Mutilator-Nation
15,148 posts, read 15,204,207 times
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I am thinking of bidding on an auction property via auction.com. I have read over some of the FAQs, but still have questions that I could not find answers for on the sites FAQs:

Do the auction sites list any/all of the county/city orders (demolition, condemnation, non-habitation, repair/remediation) placed on the property for auction????

Would the listing show special taxation (mello-roos) or do I have to search that myself?????

I chatted with an online rep. She stated that any and all arrears would be paid with the purchase price....clear title after that....how reliable this information is, I do not know........anyone????

The property I am looking at is NON-FINANCEABLE. Obviously I have the ability to do the deal all cash(auctions can turn into a feeding frenzy).........kinda crazy though.....am I insane to do this???

Any other comments are welcome......except, please spare the SNARK!
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Old 06-10-2012, 06:31 PM
 
Location: Salem, OR
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Yes you need to do the research yourself. Banks just hire them to send properties to auction. It isn't their job to investigate the properties.
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Old 06-10-2012, 11:34 PM
 
Location: Phoenix AZ
5,920 posts, read 10,440,488 times
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I bought one from auction. Com about a year ago. The sale was as-is and the contract was very one sided. It was a good deal, but I wouldn't count on any disclosures or warranties of any kind, the contract is not in your favor.

The transaction went ok, they had an out-of-state escrow/title company handle the deal, and it was problem-free.

The only thing I thought was snarky was the excessive "re-key" fee tacked onto the addendum. They installed the cheapest locks I've ever seen, actually going so far as to install a closet doorknob on the entry door. Yes there was still a (cheap) deadbolt present, but I had to immediately toss my "new" locks in the trash.

If you've done your due dilligence, you can do fine with them, but don't expect them to do anything in your favor.
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Old 06-11-2012, 12:58 AM
 
Location: Brawndo-Thirst-Mutilator-Nation
15,148 posts, read 15,204,207 times
Reputation: 10872
Quote:
Originally Posted by Zippyman View Post
I bought one from auction. Com about a year ago. The sale was as-is and the contract was very one sided. It was a good deal, but I wouldn't count on any disclosures or warranties of any kind, the contract is not in your favor.

The transaction went ok, they had an out-of-state escrow/title company handle the deal, and it was problem-free.

The only thing I thought was snarky was the excessive "re-key" fee tacked onto the addendum. They installed the cheapest locks I've ever seen, actually going so far as to install a closet doorknob on the entry door. Yes there was still a (cheap) deadbolt present, but I had to immediately toss my "new" locks in the trash.

If you've done your due dilligence, you can do fine with them, but don't expect them to do anything in your favor.



Thanks a lot for the information.


And wow, a 5% buyers premium(that is what they list on the site)....what a ripoff.

Let me ask, were the disclosure documents accurate. Did you get ANY suprises before, during or after escrow?????????
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Old 06-11-2012, 08:49 AM
 
4,480 posts, read 7,937,629 times
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Just keep in mind, even if you win the auction, you dont get the property if you havent met the unpublished reserve price the bank has. So if you win the auction for $19,000 and the bank has a reserve price of $150,000, they will counter with $150,000. You dont get it for $19k.
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Old 06-11-2012, 06:18 PM
 
Location: Brawndo-Thirst-Mutilator-Nation
15,148 posts, read 15,204,207 times
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Quote:
Originally Posted by 399083453 View Post
Just keep in mind, even if you win the auction, you dont get the property if you havent met the unpublished reserve price the bank has. So if you win the auction for $19,000 and the bank has a reserve price of $150,000, they will counter with $150,000. You dont get it for $19k.
Thanks for the information, didn't know that!

Do you know if most auction websites list if there is a reserve or not?
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Old 06-11-2012, 06:28 PM
 
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None of them list the reserve price. Not that I have seen.
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Old 06-11-2012, 11:14 PM
 
Location: Phoenix AZ
5,920 posts, read 10,440,488 times
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Quote:
Originally Posted by tickyul View Post
Thanks a lot for the information.


And wow, a 5% buyers premium(that is what they list on the site)....what a ripoff.

Let me ask, were the disclosure documents accurate. Did you get ANY suprises before, during or after escrow?????????
There was no disclosure at all with the property I purchased. It had obvious defects which prevented it from being financed ( leaky garage roof, stolen water heater & garage door opener). I didn't get any surprises because I looked the property over carefully before bidding.

And fwiw, the property I purchased was listed by fmna for a couple of months at $90k, then $80k, then auction.com marketed it "starting bid of $19k!"... It took $62,500 to actually buy it. The "auctions" weren't really auctions. When they felt the bids were high enough, my offer was sent to fmna and accepted a few days later.

Auction.com was having fairly regular "auctions" at the local convention center at the time, complete with shill bidders & secret reserves. I just bid during the "pre-auction", auction... I'd never go to the circus they had at the convention center.

As for surprises, the lock changing fee was it, even on a cash sale there were a couple thousand in fees, many of which were junk fees, but that's normal in any real-estate transaction. It wasn't a house for me to live in, it was an investment, and not my first, so I knew what I was buying and had very low expectations from everyone involved. I didn't really care if they took my offer, which made it easy to bid with confidence. I really disagree with how auction.com was advertising their foreclosure circus events @ the convention center, because I could very easily see an inexperienced buyer getting run over by the process, and the one-sided contract.
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Old 06-12-2012, 07:13 AM
 
4,480 posts, read 7,937,629 times
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Just think how quickly the inventory could be processed if it was a real auction with the reserve price listed on the site. Remember all the crazy auctions that happened in the 1980's? Most had no reserve, auctions conducted in person, no one had internet.

Now pretty much every auction has a secret reserve price which is usually the last mortgage owed, minus 10% or so.

We have all these high tech tools, but the banks/gov was to release the inventory as slowly as possible. Only history will tell, 20 years from now, if this was a good idea.
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Old 06-12-2012, 07:33 AM
 
Location: Phoenix AZ
5,920 posts, read 10,440,488 times
Reputation: 9226
Quote:
Originally Posted by 399083453 View Post
Just think how quickly the inventory could be processed if it was a real auction with the reserve price listed on the site. Remember all the crazy auctions that happened in the 1980's? Most had no reserve, auctions conducted in person, no one had internet.

Now pretty much every auction has a secret reserve price which is usually the last mortgage owed, minus 10% or so.

We have all these high tech tools, but the banks/gov was to release the inventory as slowly as possible. Only history will tell, 20 years from now, if this was a good idea.
Your math is a little off, the last mortgage on the property I purchased was $244k, and I paid $62,500. They weren't "holding back" any inventory in that neighborhood, hence the massive drop, and subsequent rebound in values there - there are none for sale there now, and listing it @ $100k would result in a bidding war.
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