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Buku · 03-01-2008, 10:33 AM

Foreclosed Properties: Buying Foreclosed Home, Properties & Foreclosed Home Listing For Sale

Board:

I was considering attending one of these auctions. I have seen several of their signs around my area. Has anyone had experience with this organization? no idea if it is a good deal or a scam.

I know they have some questionable practices. 5% of sale price is paid by you to auctioneer. No reserve price quoted...etc.

Anyhow, feedback is appreciated.

Thanks

free4now · 03-01-2008, 10:35 AM

5% to auctioneer? Sounds like a good business to be in.

growing_older · 03-01-2008, 12:27 PM

Never been to one of these auctions, though I'm certainly seeing them advertised more and more. Starting bid prices sure seem attractive, but maybe that says something about the condition of the houses, or maybe they tend to sell higher than the starting bids. I have friends who bought a foreclosure (years ago) and they were happy with what they got, even though they needed to practically rebuild the place from the inside out. Too much work for me, so I've never pursued it, but maybe things are different now. All the hype has certainly got me curious, so I'd be interested to see anyone with experience discuss what to look out for.

amy5708 · 03-01-2008, 12:31 PM

I attended one auction. I was given the information that the deposit is generally 10% of the price the bank hopes to sell for. Does anyone know if this is true or not?

tryan · 03-01-2008, 02:39 PM

Here's the thread on the one I attended last year. Interesting the MA auction is planned for mid March (as stated at the end of the auction I attended). Yup, auctioneer gets 5% ADDED to the final bid. And you're expected to pay it before you leave the auction. And close in 30 days ... but I've seen the closing dates pushed out a couple months (via the registry recording date).

I'll go to the MA/NH auction. But don't expect any "steals" ... still too early.

Enjoy!

http://www.early-retirement.org/foru...ese-30813.html

tryan · 03-01-2008, 02:52 PM

Quote:

I was given the information that the deposit is generally 10% of the price the bank hopes to sell for.

The deposit you leave is the 5% the auctioneer gets. Saw (via the registry) some bidders were able to have countrywide give 100% financing - INCLUDING the 5% deposit.

Like I said ... it's too early (100% financing!)

jazz4cash · 03-01-2008, 03:04 PM

I looked at two places in my neighborhood (last weekend and today) which were open and picked up the brochure. I plan on going to the Balt auction just to check it out. The brochure says the same thing as what tryan indicated above. You must have cashier's check for 5k and then write personal check for the difference between 5k and 5% or finance 100% with Countrywide!

.

jazz4cash · 03-15-2008, 11:43 PM

Well, I got distracted and did not have a chance to go to the bank to get a cashier's check and could not bluff my way into the auction without one. I was not a serious buyer, but was looking forward to watching the auction, so here's a report from the Washington DC auction:

What Auction Bargains? - washingtonpost.com

mathjak107 · 03-16-2008, 06:34 AM

having seen how tax liens work i wouldnt count on getting anything except a house needing a ton of renovation and repairs. in most areas the stuff goes to professional real estate people first if its any good.
are the owners already out or is that a seperate eviction process taking years? how about a tax lien sale where not only did it take over 2 years to complete, but we were responsible for storiage fees for the evictees furnature until it was all resolved. all the while paying past taxes, interest and current taxes . the house was a total shamble inside. id never get involved with a foreclosure or tax lien sale ever. it took almost 2 years for just the the eviction case to finalize as they used every stall tactic on the courts.. foreclosure is one issue in most states, eviction is seperate. if they leave a house full of furnature you have to store it and pay the fees at hundreds a month for whatever the states time period is for the evictees to pay you storage and interest fee's. could be a year

if they dont claim it and pay you it can cost you thousands in storage fees, transportation costs and disposal fees if you end up owning all that junk

jazz4cash · 03-16-2008, 06:02 PM

Quote:

Originally Posted by mathjak107

having seen how tax liens work i wouldnt count on getting anything except a house needing a ton of renovation and repairs. in most areas the stuff goes to professional real estate people first if its any good.
are the owners already out or is that a seperate eviction process taking years? how about a tax lien sale where not only did it take over 2 years to complete, but we were responsible for storiage fees for the evictees furnature until it was all resolved. all the while paying past taxes, interest and current taxes . the house was a total shamble inside. id never get involved with a foreclosure or tax lien sale ever. it took almost 2 years for just the the eviction case to finalize as they used every stall tactic on the courts.. foreclosure is one issue in most states, eviction is seperate. if they leave a house full of furnature you have to store it and pay the fees at hundreds a month for whatever the states time period is for the evictees to pay you storage and interest fee's. could be a year

if they dont claim it and pay you it can cost you thousands in storage fees, transportation costs and disposal fees if you end up owning all that junk

I guess it's possible you could encounter some similar situations to your tax lien sale experience but even on the very limited inspection you could do at an open house, it's at least possible to determine if property was occupied or torn up. Not sure if I mentioned, but I did inspect two of the listings and they were in decent shape. At this stage, it's not likely any raging values will be found even if you were in a position you had to buy something, you'd probably be better to negotiate with a seller.

virginia · 03-16-2008, 08:25 PM

I don't see how most of these could be "good deals" - a good deal to me would be on a home that's been owned for years, with substantial principal, and then the owner for whatever reason cannot afford to pay. Most of the recent foreclosures are on homes that have been owned for a short period of time, and had practically no principal in them.

Enuff2Eat · 03-16-2008, 09:26 PM

don't forget you got to pay another 5% on top of the price. at least that's what i understand. So if you pay $300k for the house then prepare another $15k for the auction fee.

where is the deal again?

enuff

retire@40 · 03-16-2008, 11:17 PM

No deals at these auctions.

If you buy them at the final selling price and rent them out, you have negative cash flow.

We still need more of a correction in the real estate market before prices begin to make some sense.

mathjak107 · 03-17-2008, 03:13 AM

Quote:

Originally Posted by jazz4cash

I guess it's possible you could encounter some similar situations to your tax lien sale experience but even on the very limited inspection you could do at an open house, it's at least possible to determine if property was occupied or torn up. Not sure if I mentioned, but I did inspect two of the listings and they were in decent shape. At this stage, it's not likely any raging values will be found even if you were in a position you had to buy something, you'd probably be better to negotiate with a seller.

depending on the area there may or may not be a walk thru. this tax lein was all sight unseen.

tryan · 03-17-2008, 10:35 AM

Based on the registry searched I did for a few homes, Countrywide is letting these homes go for around 60% of whats owed. I expect they'll be dropping that number until the foreclosure rate drops. Of course if a couple fools bid the thing past what's owed, they'll take that too.

Walked thru several ... the brochure is clear about whether or not the unit is occupied. Very few were occupied. FWIW, if an eviction took more than 3 months, I was too trusting ("tryan, I'll pay/leave NEXT month") or I screwed up the paperwork (once misspelled tenants name).

The Boston area auction is on March 29th ... if any one goes PM the selling prices (I can't be there).

ziggy29 · 03-17-2008, 10:40 AM

Unless one thinks house prices (and rents) will rise sharply in the near future, just because something seems "cheap" doesn't mean it is...and if it negative cash flows, it isn't.

lazygood4nothinbum · 03-17-2008, 10:44 AM

Quote:

Originally Posted by Buku

No reserve price quoted...etc.

as it was explained to me by an auction company recently: there might be a reserve without you knowing it as there is no law which says a reserve has to be announced. even when a reserve has been announced initially, once the reserve has been met the property might then be listed as absolute, with only the auctioneer and the seller knowing that the reserve has been met.

so, i think, there could be a starting bid which might actually be lower than the reserve which is not announced just to get the bidders excited and get momentum going. sounds like scamming to me.

tryan · 03-17-2008, 11:02 AM

Countrywide is closing these deals at the auction prices (plus 5%) ... mapped the Nov 07 list to the Mar 08 list. Of ~75 homes mapped, only one was a carry over from the previous auction. The reserve bid has not come into play IMO.

FWIW I also did some registry searches .... took a couple months, but the deals closed.

lswswein · 03-17-2008, 12:10 PM

I am in the neighborhood (Boston western suburbs) but won't be around that day. I looked though the listings - nothing that jumps out as great neighborhoods. Also the $5K cheque in hand to enter the auction place makes it really inconvenient to go and look.

-h

tryan · 03-17-2008, 01:18 PM

Quote:

Also the $5K cheque in hand to enter the auction place makes it really inconvenient to go and look.

Saw this enforced for about the first hour ... then it was an open door. Lots of spectators.

03-01-2008, 10:33 AM	#1
Buku Dryer sheet aficionado Join Date: Jan 2008 Posts: 35	US Homeauctions.com Foreclosed Properties: Buying Foreclosed Home, Properties & Foreclosed Home Listing For Sale Board: I was considering attending one of these auctions. I have seen several of their signs around my area. Has anyone had experience with this organization? no idea if it is a good deal or a scam. I know they have some questionable practices. 5% of sale price is paid by you to auctioneer. No reserve price quoted...etc. Anyhow, feedback is appreciated. Thanks

03-01-2008, 12:31 PM	#4
amy5708 Recycles dryer sheets Join Date: Feb 2008 Posts: 50	I attended one auction. I was given the information that the deposit is generally 10% of the price the bank hopes to sell for. Does anyone know if this is true or not? __________________ www.werv4fun.com Sold the house, Downsizing, and plan to RV fulltime with the kids. Countdown to June, 2009

03-01-2008, 02:39 PM	#5
tryan Thinks s/he gets paid by the post Join Date: Mar 2005 Posts: 1,459	Here's the thread on the one I attended last year. Interesting the MA auction is planned for mid March (as stated at the end of the auction I attended). Yup, auctioneer gets 5% ADDED to the final bid. And you're expected to pay it before you leave the auction. And close in 30 days ... but I've seen the closing dates pushed out a couple months (via the registry recording date). I'll go to the MA/NH auction. But don't expect any "steals" ... still too early. Enjoy! http://www.early-retirement.org/foru...ese-30813.html __________________ FIRE'd since 2005

03-16-2008, 06:34 AM	#9
mathjak107 Thinks s/he gets paid by the post Join Date: Jul 2005 Posts: 2,430	having seen how tax liens work i wouldnt count on getting anything except a house needing a ton of renovation and repairs. in most areas the stuff goes to professional real estate people first if its any good. are the owners already out or is that a seperate eviction process taking years? how about a tax lien sale where not only did it take over 2 years to complete, but we were responsible for storiage fees for the evictees furnature until it was all resolved. all the while paying past taxes, interest and current taxes . the house was a total shamble inside. id never get involved with a foreclosure or tax lien sale ever. it took almost 2 years for just the the eviction case to finalize as they used every stall tactic on the courts.. foreclosure is one issue in most states, eviction is seperate. if they leave a house full of furnature you have to store it and pay the fees at hundreds a month for whatever the states time period is for the evictees to pay you storage and interest fee's. could be a year if they dont claim it and pay you it can cost you thousands in storage fees, transportation costs and disposal fees if you end up owning all that junk Last edited by mathjak107; 03-16-2008 at 06:58 AM.

03-16-2008, 11:17 PM	#13
retire@40 Thinks s/he gets paid by the post Join Date: Feb 2004 Posts: 2,583	No deals at these auctions. If you buy them at the final selling price and rent them out, you have negative cash flow. We still need more of a correction in the real estate market before prices begin to make some sense. __________________ No man is free who is not master of himself. --- Epictetus Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo

03-01-2008, 10:35 AM	#2
free4now Thinks s/he gets paid by the post Join Date: Dec 2005 Posts: 1,009	5% to auctioneer? Sounds like a good business to be in.

03-01-2008, 12:27 PM	#3
growing_older Recycles dryer sheets Join Date: Jun 2007 Posts: 402	Never been to one of these auctions, though I'm certainly seeing them advertised more and more. Starting bid prices sure seem attractive, but maybe that says something about the condition of the houses, or maybe they tend to sell higher than the starting bids. I have friends who bought a foreclosure (years ago) and they were happy with what they got, even though they needed to practically rebuild the place from the inside out. Too much work for me, so I've never pursued it, but maybe things are different now. All the hype has certainly got me curious, so I'd be interested to see anyone with experience discuss what to look out for.

03-01-2008, 03:04 PM	#7
jazz4cash Thinks s/he gets paid by the post Join Date: Aug 2004 Location: Laurel, MD Posts: 1,075	I looked at two places in my neighborhood (last weekend and today) which were open and picked up the brochure. I plan on going to the Balt auction just to check it out. The brochure says the same thing as what tryan indicated above. You must have cashier's check for 5k and then write personal check for the difference between 5k and 5% or finance 100% with Countrywide! .

03-15-2008, 11:43 PM	#8
jazz4cash Thinks s/he gets paid by the post Join Date: Aug 2004 Location: Laurel, MD Posts: 1,075	Well, I got distracted and did not have a chance to go to the bank to get a cashier's check and could not bluff my way into the auction without one. I was not a serious buyer, but was looking forward to watching the auction, so here's a report from the Washington DC auction: What Auction Bargains? - washingtonpost.com

03-16-2008, 08:25 PM	#11
virginia Recycles dryer sheets Join Date: Feb 2005 Posts: 220	I don't see how most of these could be "good deals" - a good deal to me would be on a home that's been owned for years, with substantial principal, and then the owner for whatever reason cannot afford to pay. Most of the recent foreclosures are on homes that have been owned for a short period of time, and had practically no principal in them.

03-16-2008, 09:26 PM	#12
Enuff2Eat Recycles dryer sheets Join Date: Oct 2005 Posts: 303	don't forget you got to pay another 5% on top of the price. at least that's what i understand. So if you pay $300k for the house then prepare another $15k for the auction fee. where is the deal again? enuff

03-17-2008, 10:35 AM	#15
tryan Thinks s/he gets paid by the post Join Date: Mar 2005 Posts: 1,459	Based on the registry searched I did for a few homes, Countrywide is letting these homes go for around 60% of whats owed. I expect they'll be dropping that number until the foreclosure rate drops. Of course if a couple fools bid the thing past what's owed, they'll take that too. Walked thru several ... the brochure is clear about whether or not the unit is occupied. Very few were occupied. FWIW, if an eviction took more than 3 months, I was too trusting ("tryan, I'll pay/leave NEXT month") or I screwed up the paperwork (once misspelled tenants name). The Boston area auction is on March 29th ... if any one goes PM the selling prices (I can't be there). __________________ FIRE'd since 2005

03-17-2008, 10:40 AM	#16
ziggy29 Thinks s/he gets paid by the post Join Date: Oct 2005 Location: Texas Hill Country Posts: 2,377	Unless one thinks house prices (and rents) will rise sharply in the near future, just because something seems "cheap" doesn't mean it is...and if it negative cash flows, it isn't. __________________ FIRE Clock: Retired. Since it feels like I'll never be now. waiting for the government to privatize the gains and socialize my losses in my 401K...

03-17-2008, 11:02 AM	#18
tryan Thinks s/he gets paid by the post Join Date: Mar 2005 Posts: 1,459	Countrywide is closing these deals at the auction prices (plus 5%) ... mapped the Nov 07 list to the Mar 08 list. Of ~75 homes mapped, only one was a carry over from the previous auction. The reserve bid has not come into play IMO. FWIW I also did some registry searches .... took a couple months, but the deals closed. __________________ FIRE'd since 2005

03-17-2008, 12:10 PM	#19
lswswein Recycles dryer sheets Join Date: Mar 2005 Posts: 319	I am in the neighborhood (Boston western suburbs) but won't be around that day. I looked though the listings - nothing that jumps out as great neighborhoods. Also the $5K cheque in hand to enter the auction place makes it really inconvenient to go and look. -h __________________ Hope springs eternal in the human breast:Man never is, but always to be blest. The soul, uneasy and confined from home,Rests and expatiates in a life to come.

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