Buying from Sheriff sales

[Austin Ralls]

My partner and I are looking to scale our business and look at buying some deals from sheriff sales in our areas. We are trying to line all our ducks in a row and make sure that we aren't missing something when it comes to purchasing properties from these auctions. Is there anything we should be aware of when we are buying these properties other then the fact the inside might be destroyed? Are there any other things we are liable for paying if we have the winning bid? 

Thank you for those that help! 

[Marty Boardman]

I've bought hundreds of houses at trustee's sales (Arizona) and at sheriff's sales (Wisconsin). The single most important thing you MUST do is get a title report prior to the auction (sometimes referred to as a preliminary title report, letter report or owner report).

The title report will reveal what lien position the foreclosing lender is in, as well as if there are any other "skeletons" in the closet of the home (i.e. federal or state tax liens). It will also tell you if there are any unpaid property taxes (yes you will have to pay those if you're the winning bidder).

I guess I've been fortunate over the years, but none of the houses I've bought have had any meth contamination. Most of the time the homeowner is simply down on their luck from a job loss, divorce or medical issues and can't afford to pay the mortgage. Good luck Austin!