The Process of Buying a Foreclosure at Auction
January 8, 2008 by Lucas Lechuga
I also want to note that there is absolutely no cost to a potential bidder if they decide to work with a licensed real estate agent. The agent's commission is paid for by the auction house from the buyer's premium. The winning bidder must still pay the buyer's premium regardless of whether or not they decide to use the services of a real estate agent.
Thank you Candela ,That’s exactly what I wanted to know.I was told that ALL the property got sold though.I guess that’s not the case.I was hoping that I could pick up a certain unit that I was interested in .So in other word’s there is still a RESERVE on all property sold.Thank you very much again.
GLEN,
If you are referring to the auctions that go on in court, I went to one a few months back.
The first and most important thing you need to know is that when you buy a property in auction at court you have to close THE SAME DAY so you either need to be flush with cash, or have a good hard money lender in your back pocket.
The auction I went to had 148 properties for sale, and only 1 sold, it was in Opa Locka. Everyone there seemed to know one another and there’s one guy who has been in business for years, selling books at/before the auction that detail all the properties for sale, but I didn’t get a chance to see what was in the book. I think he sells it for $25 a copy so I’m guessing there’s plenty of info in there.
The auction is pretty routine: The plaintiff (lender) stands in the front, the court announces the property, some guy in the crowd yells out to ask how much the debt on the property is and whether the bank will take a short sale, the bank says No and starts the bidding at the outstanding balance of the loan, no one bids, and the bank takes the property back.
I’m sure that will change as the market gets worse, but that’s what goes on now.
Can anybody tell me how the JUDICIAL Sales work in Florida? Any Information would be greatly appreciated. Thank you
Alejandro,
The best PR that I’ve received since beginning this blog was being quoted in the Financial Times. They even included my phone number and a link to my blog on their website. That happened about 4-5 months ago. That was HUGE! Someone from Hong Kong flew out to meet with me as a result of that article.
Mauricio,
I haven’t come across any upcoming foreclosures. I’ll likely post about it if I do come across any.
Lucas,
Thanks for the link. Any auctions coming soon?
“I have been through six economic downturns since 1959 and it is always the same,” he said. “This time, too, you will get 30 percent to 45 percent discount of the retail price.”
Interestingly, Ms Ford got a discount of 52% and we are nowhere near the end of the down cycle. Makes me think this time IS different. The main reason is that the subprime element did not exist prior to this cycle and that can add a significant dose of further suffering to the builders and developers.
Any news on Loft III?
That is the second article I read today that quotes you Lucas, you are getting great PR
Need some help in buying a unit in my building? Im new at this Thank you
Anyone knows of a good floreclosure condo in Miami Beach or Doral Area??
As a real estate agent I have seen many foreclosers in the last months. But I have to say, that buying condo on a real estate auctions is not always a good deal because the most and best condos are already sold before it comes to auctions.
Lourdes,
It has been over a year since you posted this question regarding condos. Did you get any information on the subject? I am looking in the same area and would appreciate names, numbers, and email addresses of any auction houses, mortgage banks, or builders that deal in foreclosed condos.
Lucas Lechuga, if you are still involved with this site, perhaps you can answer my question.
Thank you for your assistance.
Lourdes,
You have to give a definition of good foreclosure condo. What do you mean? Investment? Your own residence? You have to be more specific.