Buying/Placing bids at auctions

[Sean Healy]

I'm interested in buying homes at auction for myself. Preferably a single family flip but honestly anything that would make sense. I am an agent in MA now and we work with off-market properties but they never come from bank owned auctions. I know at auctions you can get a great discount on property, but what are the biggest cons? Is there anything I need to be aware of before I start going to auction? And where is the best place in Massachusetts to find them? I appreciate all feedback, even from people outside MA! 

[Tim Herman]

@Sean Healy Is it already bank owned or a foreclosure. Differences. Both Both are usually bid blind without the ability to see the interior. Have to consider that in your bid. A foreclosure can be for taxes, hoa fees, second mortgage, first mortgage, etc. If it is a foreclosure the highest priority foreclosure can wipe out the other liens. Need to have a title search to make sure what lien is foreclosing.

If bank owned or REO then the foreclosing party should have cleared all outstanding liens. Usually get a special warranty deed.

Both can have tenants or previous owners living in them and would be the responsibility of the purchaser to get them out. They can still damage the property prior to move out. All the auctions will be cash bids.