As an auctioneer for over 15 years, perhaps I can help you.
To get more info on the auctions, call the auction company and ask for a brochure, or a bidder’s packet, if available.
If the homes are auctioned the normal way, you probably won’t need a title search - they will be sold with marketable, good title.
As to finance, check the terms of sale. Usually, homes are auctioned with NO FINANCING CONTINGENCY, AS-IS. In other words, the inspection period ends when the auction begins, you will be getting the home just the way you see it. If you are the high bidder, you will have to give a deposit (usually 10%) and close in a reasonable time. If you do not close, for any reason, you will forfeit the deposit.
Again, check the terms of sale. Sometimes there are different terms with seller financing.
Stu Silver, CCIM
Lead trainer at Russ Whitney’s Millionaire U
Posted by Steven Jacko on July 09, 2001 at 11:11:46:
I live in Phoenix, AZ and I have notice that there are a lot of houses up for auction. Can anyboby tell me where I can get more info,on the auctions, and a cheap way to do a title search, without paying a title company $200+ for every house??? Also if you would know of a good way to finance these homes for investment…Thanks…Steve
You sound as though you may be a beginner in real estate. If so, I would recommend that you try some more conventional deals before venturing into the foreclosure marketplace. It requiries savy and money. And it is very risky. You could easily get all of your capital wiped out by one bad deal near the beginning of your investing career. Maybe that would be at the end of it too.
People are attracted to foreclosures because of the potential for big profits. They are there, but it is very tough for a beginner to get to them.
Learn while you do other deals and then in two, three, four years, if you find foreclosures still attractive, you may be ready to give them a shot.
I have seen dozens of potential foreclosure investors spend months trying to get into the business, just to have to drop out in frustration. And they had the cash to buy. This does not mean you will fail. But the odds are decided stacked against you. I suggest putting your valuable time to work learning and doing simpler deals.
If the auction is a sheriff’s sale then you can go to the county clerk of courts office and see what the owner is being sued for (the amount) Also you can go the county tax office and see what lien(s) are on the property and what the owner paid for the house without going through a real estate agent or title company. But be careful. Title company are insurance for the deeds you will need them in the end.