Auction today

[Erin Legler]

Hello community,

My rehab is almost complete and my goal is to price it under market value to it sells quickly so I can re-invest.  I've been researching different methods for my next property, short sales, reos, tax deeds etc.  

There was a foreclosure auction that went for 10K. The auction was brought on my the HOA for past dues of 4K. So total investment of around 15K. The comps in the area are at about 125K. So my question is "What am I missing?" Most of the other auctions went for assessed value or over.

Did the 3rd party bidder just get lucky or are there some other factors that I'm missing?

Anyone have any info it would be greatly appreciated as my rehab will be done in a week.

[Jon Holdman]

There was probably a first mortgage on this property. The auction was for the HOA lien, which was probably junior to the first. So the buyer may now have the property for $15K, but they still have a first (and perhaps other liens) that have to be satisfied.