foreclosure auctions - Posted by Raymond

import · January 21, 2003, 4:43pm

Posted by Michael A. Bardelli on January 22, 2003 at 18:19:08:

Mike,
Email me privately and I will give you some useful information. Include in your email your state, county, and if you live in a deed of trust state or a mortgage state.

Mike

import · January 21, 2003, 4:43pm

foreclosure auctions - Posted by Raymond

Posted by Raymond on January 21, 2003 at 17:43:00:

I am thinking about going to our local courthouse and try to buy some properties that are being foreclosed on, having never done this before, I am not sure how to go about it; can someone give me some pointers?

import · January 22, 2003, 6:18am

Short story - Posted by Mike

Posted by Mike on January 22, 2003 at 07:18:46:

I thought I had a grasp on Sheriff’s sales. Then I went to my first sale with no intention of buying, just went to learn, when I left after the auction I was more confused than I was when I went in. I stopped a guy in the hallway who was the successfull bidder on a property. I asked him if he mind telling me what just happened and what was the total amount of the leins on the property he just bought. His reply was, “what are you talking about?, what leins?” I asked how much in back taxes were owed and he said he didn’t know.
Some days I think I’m not the brightest bulb, then I meet people who make me feel like a million watts. Since that sale I have bought and sold six properties which were all REO properties with clear titles. My point is, leave the brain surgery to the guy I met at the Sheriff’s sale and start out doing something safer. Just my .01 cent, I’m keeping the other .01 cent because I like to be a little conservative.

import · January 21, 2003, 9:48pm

I was thinking about performing… - Posted by JT-IN

Posted by JT-IN on January 21, 2003 at 22:48:07:

Raymond:

I was thinking about performing some Open Heart Surgery myself… but then I thought that maybe I should learn something about it first… Get the point…?

Actually, foreclosure buying can be as deadly (financially) to an unsuspecting buyer, as open heart surgery could be to a person (physically). So it is fully advised that before you ever consider buying at auction, make certain that yo know PLENTY about the subject matter.

I buy lots of houses at the Auction, as that is how I make my living almost exclusively. The strange thing about this is, thee are literally 50 or 60 folks there each week to bid, and there probably isn’t more than two or three who really know what they should know before bidding… IMHO. There are folks who get wounded deeply in the foreclosure sale trenches, as this is the area of maximum risk for a buyer, more than almost any other venue.

Learn, learn and learn some more, then go to buy at the auction. Get to the point where you know “why” each phase and action occurs in the foreclosure process, before you think about becoming an active participant. Of course you will do as you wish, but this is intended to educate as opposed to preach to you, and hopefully you get that from it.

Wish you all the best…

JT-IN

import · January 21, 2003, 7:19pm

Re: foreclosure auctions - Posted by Sean

Posted by Sean on January 21, 2003 at 20:19:57:

I third the opinions of Michael and Ron, with no experience going to a court house auction to get a good deal is just asking for disaster. You aren’t ready…

If you want to go to the Courthouse and watch an auction, that is fine, but don’t go there to buy… please, I emplore you, start out safer than auctions… save those for when you know what you are doing.

Best of luck.

import · January 21, 2003, 7:06pm

Re: foreclosure auctions - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on January 21, 2003 at 20:06:30:

Raymond------------

I agree entirely with Michael A. Bardelli–do not mess around with foreclosures when you are a beginner. You don’t know how much you don’t know.

You probably have not read my article on the topic, have you? It is under the money-making tips section of this CREONLINE.COM website. The title is something like “Are Foreclosures for You?”

I know that big bucks from foreclosures looks attractive. And it is, for seasoned investors. With lots of cash.

If you have not done so, I recommend that you read my post for beginners which you can find by putting “beginners success” into the search function on this main board of CREONLINE.COM website. The first post is probably it, from Sept 2002.

Good InvestingRon Starr***

import · January 21, 2003, 5:42pm

Re: foreclosure auctions - Posted by Michael A. Bardelli

Posted by Michael A. Bardelli on January 21, 2003 at 18:42:22:

Raymond,
If you have never bought foreclosures before or if you have no experience with foreclosures, then buying on the courthouse steps is not the way to get started. Too risky. You cannot inspect the property before the auction most of the time. You get the property “as is” regardless of defects to the title. In my market, you must have 10% in cash or certified funds at the auction and then have the rest of the cash within 14 days. Try dealing directly with the homeowner in distress. This is where the best deals are made. Try attending the auction but DON’T bid. Learn how the process works before getting your feet wet. In my market, the only people who bid at the auction are the really well financed companies who can pay all cash at the auction. Best of luck.

Sincerely,
Michael A. Bardelli

import · January 22, 2003, 5:44pm

Another reason why I like this site - Posted by IB (NJ)

Posted by IB (NJ) on January 22, 2003 at 18:44:19:

Because the veterans are generally concerned about New Investors who come on here with honest questions. On another site, I’m engaged in a little back and forth with a few ‘so-called’ Investors (I really think they are just book/Guru promoters masquerading as Investors) who think its possible to educate Newbies on preforeclosure investing with just a few paragraphs. And the Newbie leaves the site thinking that now he has talked to someone via message board, he’s ready to plunk his life savings down at the sheriff sale.

import · January 22, 2003, 4:01am

Re: foreclosure auctions - Posted by Raymond

Posted by Raymond on January 22, 2003 at 05:01:42:

Thanks to all for your input, the reason for asking was; I purchased a HUD foreclosure from HUD several months ago for my personal residence, HUD sells most of their homes at FMV and I was hoping to purchase another at a foreclosure auction and save a few bucks, There is one in my area going to auction Feb. 6th, the owner has died and the FHLM corp. is foreclosing on it. I did a drive by on the property but don’t know the condition of the home itself. I will go the auction and listen & learn and maybe I can purchase one at a later date. Thanks again to everyone that responded.

import · January 22, 2003, 6:43pm

Re: Another reason why I like this site - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on January 22, 2003 at 19:43:01:

IB–(NJ)-----------

Yes, if we don’t tell the beginners the truth, who will?

I think there is a lot of truth to what you say: " And the Newbie leaves the site thinking that now he has talked to someone via message board, he’s ready to plunk his life savings down at the sheriff sale."

And you might want to change that to “…his life savings and that of a couple of relatives…”

Well, QRE–Quick Riches Easily–to you.

Good InvestingRon Starr******

import · January 22, 2003, 11:47am

Re: foreclosure auctions - Posted by Michael A. Bardelli

Posted by Michael A. Bardelli on January 22, 2003 at 12:47:41:

Raymond,
Good to hear that you have purchased a home from HUD. I generally stay away from those around my area because they pretty much sell for FMV as you have stated in your last post. No deal there. I invest in foreclosures by dealing with the homeowner in distress BEFORE the auction. This is where the best deals can be made. All of my city’s real estate records are online. With Joe Kaiser’s “Totally Dominate Your Foreclosure Market” as my guide and a laptop computer, I have manages to avoid the need to attend an auction. I am finding property before it is published in the local newspaper. Buy REO’s or work with distressed owners. Don’t buy at the auction. Leave that to the pros. I am not a pro. Not even close. Take this advice. Best of luck.

Sincerely,
Michael A. Bardelli

import · January 22, 2003, 8:07am

Re: foreclosure auctions - Posted by Sean

Posted by Sean on January 22, 2003 at 09:07:49:

Raymond,

Not to sound all negative, you did do a few things right:

You asked others with experience (GREAT JOB!)
Hopefully you will follow there advice (EVEN BETTER JOB!)
You did have the property you wanted to buy picked out already (Definately something you want to do if you ever do go to auctions)

You bought a HUD foreclosure, that’s great. But what you bought is commonly referred to as an REO. That means its already been past the auction block and the bank has taken the property back. THESE are far, far safer ways to get into property.

Generally, when you buy an REO (forclosed property) from a bank. The transaction is pretty much the same as a normal home sale… you are going to get a property GENERALLY with a clean title, no liens etc etc. A far far safer way to get started than at auctions. Usually the property is listed with an agent, so you can get inside and physically inspect the property… you can put contingencies in the contract to buy the property, and you don’t need to have the cash to finish the sale within a week or 10 days or whatever your local custom is for auctions.

There is a lot of money that can be made in foreclosed properties. I don’t think many here will argue that. If you are interested, I definately would suggest starting out with REO’s not auctions.

Best of luck to you.

import · January 22, 2003, 2:09pm

Re: foreclosure auctions - Posted by Mike

Posted by Mike on January 22, 2003 at 15:09:33:

How do you find them before they are in the newspaper?
Thanks for any response
Mike also