08-22-2009 07:31 AM
Hi all- I'm sorry if this question has been asked before, but I couldn't find it.
I'm signed up at a foreclosure-listing site, and I see that there are plenty of foreclosures that haven't hit the MLS yet. How does a normal person who just wants to but a house (and avoid bidding wars) buy something that hasn't hit the market yet?
08-22-2009 10:10 AM - edited 08-22-2009 10:11 AM
You buy all cash from auction and take house without viewing it, liens attached, and evict owners.
Don't you think all of us 'normal people' want to avoid bidding wars too?
08-22-2009 10:39 AM
08-22-2009 11:29 AM
RMS is correct here. Most anyone would want to buy and avoid the bidding war but unfortunately buying even at a foreclosure auction doesn't guarantee to avoid a bidding war. Most foreclosure auctions have several very experienced qualified bidders for most any home with equity being auctioned.
Assuming the 1st or 2nd mortgage is foreclosing which is the case in almost every foreclosure auction ALL liens are wiped out their are no liens that remain attached after foreclosure. And yes you do have to remove occupants if any, after foreclosure.
Hope this helps
08-22-2009 11:40 AM
08-22-2009 11:43 AM
08-22-2009 11:53 AM - edited 08-22-2009 11:53 AM
I saw a house at auction where the second was foreclosing, nobody bid on it.
Wells 1st 450k
Wells 2nd 50K
Sold to bank 50K
Now it is listed as a REO, how can a second foreclose and wouldn't they have to go back and foreclose again with the 1st since the bank does not own the house, only the second?
The second recorded after the 1st, same day though.
08-22-2009 12:27 PM
We had a neighbor who defaulted and someone found out they were in pre-foreclosure (either at the County Recorder which often publishes this information online & free or at a paid foreclosure site) and offered them enough money to pay off the mortgage. It was well below market, but they took it. The buyer then flipped their house and made off with 100K in profit.
Other than the pre-foreclosure notices, I don't know of any benefit. (But I am not an investor - just a regular person trying to find a home).
Auction notices go into the local newspapers, don't they?
ps. If you signed on to Realtytrac, you should search the name here in Redfin. Many people had trouble with unauthorized charges going on to their credit cards after the "free trial" expired. The charges were listed under a name of one of their 'affiliates'. I just cancelled that card number in order to avoid the problem.
08-22-2009 01:22 PM
"So would you say that it's not worth it to pay for a foreclosure listing service? For the average homebuyer, is there an advantage to using one of these services? "
Buying homes on the courthouse steps at a foreclosure auction is for experienced investors who do this as a job. Not every deal they purchase makes money some homes have latent defects that are not discovered until after foreclosure others have tenants who declare bankrupcy and stay in the home month after month for these reasons foreclosure investors buy many homes assuming some they will make money, some break even and some they lose money just like any other business. For the average homebuyer find a good experienced buyers agent and have them guide you through the process.