Posted by Frank Chin on February 09, 2001 at 12:14:24:
I was waiting for someone responding having picked stuff up at Sheriff/Courthouse steps auctions. I’ve attended courthouse step auction, but actually only bought at public auctions. So I can answer some of the points:
- How can you find out about liens on these properties without having to pay for a title search?
Go to the local courthouse to look up public records. If you’re a newbie, or look lost, someone older and wiser ususally give you a helping hand. Usually works for me.
Here in New York City, I also go to the Housing Department to look up building violations. In other areas check with the town Planning Department regarding open permits or other issues.
- What are the risks involved?
These properties are sold as is. There might be outstanding liens, back taxes.
In other words, it could be termite ridden, has leaky roof with 50K worth or liens. You’ll have to ferret this out.
In another case I looked at, the occupants refused to leave and the eviction proceedings dragged past the auction. The winning bidder would have to evict.
- What is the difference between these properties and
those that are bank owned?
These properties had gotten to the point where the bank had giving up on them. In some cases, the bank goes there to put in a bid at least equal to the mortgage.
In other cases, you can call a bank for bank owned properties and they’ll refer you to their broker. They’re trying to at least recover their loan outstanding. It would be helpful if you looked up the mortgage in the public records.
- Is there anyway to buy these properties before they
are auctioned/opened to the public?
There were prior discussions on this, depending on whether you want to invest any of your money. You can work with the owner and bank to stop a foreclosure if you can come up with all or part of the back payments. I have done this.
There are other prior discussions regarding negotiating with the bank to discount the note. Its another approach but I’m no expert at this.
But then, why do this if you can pick it up for $100.00 at the courthouse steps.
