Screaming Buys at Trustee Sales ???

[neophyte]

Why am I not reading here of good buys at trustee sales?

From what I read, there are impediments:

-You have to pay all cash, on the spot (cashier’s check)

-You cannot inspect the inside of the house

-You might have to go to court to evict an occupant (on paper it looks as if that might take a month or so)

-The process does not wipe out mechanic’s liens

-It’s probably prudent to engage a real estate attorney to check the title, etc.

-You have to pay “costs” – and they look as if they are 1+%.

On the other hand, any second mortgage gets wiped out, and your principal (perhaps only) competitor at the auction is likely to be the owner of the first mortgage. I believe the banks set the opening bid at these auctions and it is sometimes below the amount of the first mortgage.

If you can buy at, say, $150,000 below the “retail” value, does this bring the risk/reward into balance? It looks as if one sold this year in a desirable area of Carlsbad for perhaps $200,000+ below market.

What happens to back real estate taxes and HOA in arrears? I don’t know if they are wiped out.

Any other pitfalls?

[temeculaguy]

I don’t know anything about the trustee sale you mentioned in Carlsbad or where the info came from but often times the extremely low recorded numbers from trustees sales are missing some information or that it was only the second loan that you saw. The vast majority of trustee sales or “courthouse steps” sales today are far from a bargain and just a legal step in the foreclosure process. If the actual loan was lower than the market value it would have sold before the trustee sale, almost all trustee sales are upside down. The whole concept of the “short sale” is to stop wasting time and just jump to the new low, rather than go through the waste of time that trustee sales are, and time is money. That is why nobody here talks about them. After the required trustee sale fails, the bank gets it back and determines the true market value, which will be far below what they loaned, how much lower is up to the market. It isn’t the lack of warranty or inspection that keeps us away, it’s the fact that the loan is higher than the value and trustee sales are not auctions, they don’t go to the highest bidder, they go the person that will pay off the debt. I guess if you missed out on being an FB in 2006 and really want to get in on the action, you can buy one at the courthouse.

There are exceptions, but too few to warrant consideration.

[temeculaguy]

I don’t know anything about the trustee sale you mentioned in Carlsbad or where the info came from but often times the extremely low recorded numbers from trustees sales are missing some information or that it was only the second loan that you saw. The vast majority of trustee sales or “courthouse steps” sales today are far from a bargain and just a legal step in the foreclosure process. If the actual loan was lower than the market value it would have sold before the trustee sale, almost all trustee sales are upside down. The whole concept of the “short sale” is to stop wasting time and just jump to the new low, rather than go through the waste of time that trustee sales are, and time is money. That is why nobody here talks about them. After the required trustee sale fails, the bank gets it back and determines the true market value, which will be far below what they loaned, how much lower is up to the market. It isn’t the lack of warranty or inspection that keeps us away, it’s the fact that the loan is higher than the value and trustee sales are not auctions, they don’t go to the highest bidder, they go the person that will pay off the debt. I guess if you missed out on being an FB in 2006 and really want to get in on the action, you can buy one at the courthouse.

There are exceptions, but too few to warrant consideration.

[temeculaguy]

I don’t know anything about the trustee sale you mentioned in Carlsbad or where the info came from but often times the extremely low recorded numbers from trustees sales are missing some information or that it was only the second loan that you saw. The vast majority of trustee sales or “courthouse steps” sales today are far from a bargain and just a legal step in the foreclosure process. If the actual loan was lower than the market value it would have sold before the trustee sale, almost all trustee sales are upside down. The whole concept of the “short sale” is to stop wasting time and just jump to the new low, rather than go through the waste of time that trustee sales are, and time is money. That is why nobody here talks about them. After the required trustee sale fails, the bank gets it back and determines the true market value, which will be far below what they loaned, how much lower is up to the market. It isn’t the lack of warranty or inspection that keeps us away, it’s the fact that the loan is higher than the value and trustee sales are not auctions, they don’t go to the highest bidder, they go the person that will pay off the debt. I guess if you missed out on being an FB in 2006 and really want to get in on the action, you can buy one at the courthouse.

There are exceptions, but too few to warrant consideration.

[temeculaguy]

I don’t know anything about the trustee sale you mentioned in Carlsbad or where the info came from but often times the extremely low recorded numbers from trustees sales are missing some information or that it was only the second loan that you saw. The vast majority of trustee sales or “courthouse steps” sales today are far from a bargain and just a legal step in the foreclosure process. If the actual loan was lower than the market value it would have sold before the trustee sale, almost all trustee sales are upside down. The whole concept of the “short sale” is to stop wasting time and just jump to the new low, rather than go through the waste of time that trustee sales are, and time is money. That is why nobody here talks about them. After the required trustee sale fails, the bank gets it back and determines the true market value, which will be far below what they loaned, how much lower is up to the market. It isn’t the lack of warranty or inspection that keeps us away, it’s the fact that the loan is higher than the value and trustee sales are not auctions, they don’t go to the highest bidder, they go the person that will pay off the debt. I guess if you missed out on being an FB in 2006 and really want to get in on the action, you can buy one at the courthouse.

There are exceptions, but too few to warrant consideration.

[temeculaguy]

I don’t know anything about the trustee sale you mentioned in Carlsbad or where the info came from but often times the extremely low recorded numbers from trustees sales are missing some information or that it was only the second loan that you saw. The vast majority of trustee sales or “courthouse steps” sales today are far from a bargain and just a legal step in the foreclosure process. If the actual loan was lower than the market value it would have sold before the trustee sale, almost all trustee sales are upside down. The whole concept of the “short sale” is to stop wasting time and just jump to the new low, rather than go through the waste of time that trustee sales are, and time is money. That is why nobody here talks about them. After the required trustee sale fails, the bank gets it back and determines the true market value, which will be far below what they loaned, how much lower is up to the market. It isn’t the lack of warranty or inspection that keeps us away, it’s the fact that the loan is higher than the value and trustee sales are not auctions, they don’t go to the highest bidder, they go the person that will pay off the debt. I guess if you missed out on being an FB in 2006 and really want to get in on the action, you can buy one at the courthouse.

There are exceptions, but too few to warrant consideration.

[SD Realtor]

Neophyte there is absolutely nothing wrong with attending the trustee sale and learning how the process runs. Just remember, you are swimming with the sharks. There are more then a few experts who have made ALOT of money attending trustee sales and procurring property. These guys do the homework and have pretty strong resources to make sure that they are not buying a turd. Even with that, every now and then they get stuck with a turd anyways.

So the reality is, if you are very serious about the process, you should attend them, see how they work and check it out. Like anything else, you CAN find a good deal, but it is not like, okay I will find a home, get it at the trustee sale and walk away with a bargain.

Real professionals find homes in distress, contact the owners, and try to get the home before it goes to auction. Again, it is alot of legwork, alot of time and energy but that is where bargains are had. You can learn about the home, check it out, get inspections done, etc… You pick and choose homes that have decent equity… yada yada… Again, it takes more work then just saying I am gonna go to a trustee sale and find the home. However if you are serious about it, then yeah you may find a good bargain. Just don’t limit yourself to going to the auctions.

SD Realtor

[SD Realtor]

Neophyte there is absolutely nothing wrong with attending the trustee sale and learning how the process runs. Just remember, you are swimming with the sharks. There are more then a few experts who have made ALOT of money attending trustee sales and procurring property. These guys do the homework and have pretty strong resources to make sure that they are not buying a turd. Even with that, every now and then they get stuck with a turd anyways.

So the reality is, if you are very serious about the process, you should attend them, see how they work and check it out. Like anything else, you CAN find a good deal, but it is not like, okay I will find a home, get it at the trustee sale and walk away with a bargain.

Real professionals find homes in distress, contact the owners, and try to get the home before it goes to auction. Again, it is alot of legwork, alot of time and energy but that is where bargains are had. You can learn about the home, check it out, get inspections done, etc… You pick and choose homes that have decent equity… yada yada… Again, it takes more work then just saying I am gonna go to a trustee sale and find the home. However if you are serious about it, then yeah you may find a good bargain. Just don’t limit yourself to going to the auctions.

SD Realtor

[SD Realtor]

Neophyte there is absolutely nothing wrong with attending the trustee sale and learning how the process runs. Just remember, you are swimming with the sharks. There are more then a few experts who have made ALOT of money attending trustee sales and procurring property. These guys do the homework and have pretty strong resources to make sure that they are not buying a turd. Even with that, every now and then they get stuck with a turd anyways.

So the reality is, if you are very serious about the process, you should attend them, see how they work and check it out. Like anything else, you CAN find a good deal, but it is not like, okay I will find a home, get it at the trustee sale and walk away with a bargain.

Real professionals find homes in distress, contact the owners, and try to get the home before it goes to auction. Again, it is alot of legwork, alot of time and energy but that is where bargains are had. You can learn about the home, check it out, get inspections done, etc… You pick and choose homes that have decent equity… yada yada… Again, it takes more work then just saying I am gonna go to a trustee sale and find the home. However if you are serious about it, then yeah you may find a good bargain. Just don’t limit yourself to going to the auctions.

SD Realtor

[SD Realtor]

Neophyte there is absolutely nothing wrong with attending the trustee sale and learning how the process runs. Just remember, you are swimming with the sharks. There are more then a few experts who have made ALOT of money attending trustee sales and procurring property. These guys do the homework and have pretty strong resources to make sure that they are not buying a turd. Even with that, every now and then they get stuck with a turd anyways.

So the reality is, if you are very serious about the process, you should attend them, see how they work and check it out. Like anything else, you CAN find a good deal, but it is not like, okay I will find a home, get it at the trustee sale and walk away with a bargain.

Real professionals find homes in distress, contact the owners, and try to get the home before it goes to auction. Again, it is alot of legwork, alot of time and energy but that is where bargains are had. You can learn about the home, check it out, get inspections done, etc… You pick and choose homes that have decent equity… yada yada… Again, it takes more work then just saying I am gonna go to a trustee sale and find the home. However if you are serious about it, then yeah you may find a good bargain. Just don’t limit yourself to going to the auctions.

SD Realtor

[SD Realtor]

Neophyte there is absolutely nothing wrong with attending the trustee sale and learning how the process runs. Just remember, you are swimming with the sharks. There are more then a few experts who have made ALOT of money attending trustee sales and procurring property. These guys do the homework and have pretty strong resources to make sure that they are not buying a turd. Even with that, every now and then they get stuck with a turd anyways.

So the reality is, if you are very serious about the process, you should attend them, see how they work and check it out. Like anything else, you CAN find a good deal, but it is not like, okay I will find a home, get it at the trustee sale and walk away with a bargain.

Real professionals find homes in distress, contact the owners, and try to get the home before it goes to auction. Again, it is alot of legwork, alot of time and energy but that is where bargains are had. You can learn about the home, check it out, get inspections done, etc… You pick and choose homes that have decent equity… yada yada… Again, it takes more work then just saying I am gonna go to a trustee sale and find the home. However if you are serious about it, then yeah you may find a good bargain. Just don’t limit yourself to going to the auctions.

SD Realtor

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