In reference to a posting about trustee sales (auctions) made less then two weeks ago:
Submitted by urbanrealtor on July 31, 2008 – 11:20pm.
Not to be a tool but why would anyone want to?
I have not been to one but really, it has been my understanding that generally the bidding starts at the price of the defaulted loan.
Unless a place is truly right side up (which seems rare these days), most auctions seem like a bad idea. There is no title insurance that I am aware of or any inspection regarding liens or condition.
Let me know if I am wrong. This is just my understanding.
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Apparently you have changed your mind about things in the last 11 days.
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zk – regarding trustee sales. Most of the people involved with them are professionals. Market value is an easy determination. Obviously lenders are starting initial bids below default amounts because of depreciating market values. Trickier aspects to the trustee sales involve issues with title. Here is where you need to do most of your homework and it pays for you to work with a title officer to dig up all the information you can with regards to title. Other risks may be mitigated with alot of legwork. Issues such as physical condition of the home, termites, getting all of your due diligence done will depend on your own persistence. Never be afraid to go to the home you are interested and knock on the door to try to make contact with the owner. If they are still there you may want to offer them a small fee in order to procure some time to set up some inspections. Maybe it happens, maybe it does not. If they are not there, then trying to have your title officer help you get in touch with the lender or contact who can get you in is something to try as well. Again, no rush here, you have a few years to polish your skills. Alot of diligence and legwork can score you a good deal.
