Buying a foreclosed property at auction

[Jody Ellis]

Help!!  I want to bid on a foreclosed property offered from an online auction but want to know what due diligence should be considered besides financial analysis..... Any insight from my BP friends?!?!?

[Kristine Ann]

I'm new to foreclosures, too.  I've found that you can go to the county clerk and county tax websites and get some information on the property. You can see what taxes are delinquent and read through the foreclosure documents.

[Peter Skcin]

When bidding on a foreclosed property in an online auction in Worcester, Massachusetts, besides financial analysis, you should conduct thorough due diligence by researching the property's title to check for any liens or unpaid taxes, inspecting the property's condition if possible, and understanding the local market trends. You can utilize online resources such as the Worcester County Registry of Deeds (https://massrods.com/worcester/) for title searches, Realtor (https://www.realtor.com/realestateandhomes-search/Worcester_MA) for market analysis, and Auction.com (https://www.auction.com/) for auction-specific details and property information.

[Jody Ellis]

This is super helpful, thank you Peter!

[Ron S.]

Would also be helpful to know if it is "in" foreclosure, or "foreclosed". You stated, foreclosed, so it implies the public auction occurred and that the auction now is an attempt by the owner to sell an REO. In theory (if not practice), if the foreclosure already occurred, any liens behind the foreclosing entity were wiped out. If it didn't, buyer beware but in any event and regardless of foreclosure vs foreclosed, get a title report so you know "who's on first".

[Peter Mckernan]

Quote from @Jody Ellis:

Help!!  I want to bid on a foreclosed property offered from an online auction but want to know what due diligence should be considered besides financial analysis..... Any insight from my BP friends?!?!?

 Got a buddy in your same market that is an agent.. Could get you linked up with them if it is in that same market. 

Needed numbers PP, ARV, Repairs, Selling fees and holding fees

[Douglas Snook]

Deeds for Worcester County are on line so you can do some research there. Also visit the City/Town Hall website for tax collector and assessor. There should be a property card. That will give you the zoning code and other info (especially important if it is a multi family). If possible visit the property before hand to check out the lay of the land as it were. Compare what you see to the deed etc - there could be a shared driveway or some other easement.

Also if the building is occupied you will be dealing with an eviction as well so you will have to factor that into your costs/bid. In MA the former owner can bring a defense of a defective foreclosure to any eviction. This will drag out the process to get possession.