Auctions / Auction.com anyone with experience to answer questions

[Aaron Fakerson]

I am watching auctions on Auction.com in my area. I am thinking of bidding, but I have not bought these type of auction properties before (only familiar with HUD homes). What are some of the issues to look out for (not physical property related but more leins, title issues, things like that) ? Also if anyone is experienced with these purchases if some problem comes up what kinds of issues will I have clearing them up ?

Example I am worried about: In my neighborhood a house sold as a HUD house to an investor that I know but not all that well. He buys and then HUD ends up cancelling the sale because of some unknown to me issue. I looked at the property records and it has even now reverted back to the bank instead of HUD. The bank has put a little work in it recently but still apparently can't sell it and are now sitting on it. This has been going on for 3 years now since it was originally sold to the investor that ended up not being allowed to close.

Something like that would be horrible to be stuck sitting on a property in limbo for 3 years after laying out all cash to purchase and not getting any return or abilith to do anything else with the money.  

I am just looking to educate myself as much as possible before jumping in over my head on one of these auctioned properties.  

Thanks in advance,

Aaron

[Andrew Johnson]

Aaron Fakerson There are more than a few threads on Auction.com. Some have found deals, others have found it to be a giant waste of time. The vast majority have a reserve and it's literally written in their terms-of-use that they (auction.com) will bid against you. Which also helps explain how the same properties show up repeatedly -- nobody outbid Auction.coms shill bids to get to the reserve. Definitely look at is as a "process" more than an "auction".