Homesearch.com - My Current Experience

[Bobby Sommers]

This is my first post on BP!  Great forums!  

Here's the story, I will make a long story short... was the highest bidder on a single family foreclosure the end of July.  Closing was scheduled within 30 days, didn't happen and we have been doing 1 to 2 week contract extensions since.  Their title company and real estate agent said that they are waiting on deed and title.  About 3 weeks ago we got title and sent it to attorney to find out it was ridiculous and he wouldn't let us close on it unless they amend it.  Today is October 15th and we still haven't closed and no end in sight.   They haven't responded to our attorney and still don't have the deed.  

Also, the roof needs replacement and is covered by a tarp that is torn up and still breaching water.  Contacted their agent to try to get a contract reduction and they send to send them pics.  Sent them pics, they replied with "no contract reduction."  Thing is the extra damage is going to cost us more but relatively speaking not too much more.  But the longer this goes on the more damage it causes.

Tomorrow is the end of contract extension and my partner and I have decided we are done with this!  Attorney said we should be able to back out and receive our deposit back, he is calling me today to see which path we are going.  

Apparently homesearch doesn't do any research to make sure the houses it auctions are legit.  

Our first investment, they should be paying me for this!  Very frustrating for our first deal which took us a year to finally find one and actually get under contract.    Although I did learn some things.

I still don't know how to prevent this from happening again.  I know some closings can take a while but i figured this would be smoother.  Any ideas?  Are they liable for not doing any research on anything?

What would you do in this position?

Anyone have any recommendation on how to learn about county auctions?  I am in Palm Beach County FL.  I did some research on their site, it is very confusing.

So much for making this thing short!!

[Chad U.]

You should definitely do a O&E title search beforehand for properties on these online auction sites, as the banks rarely know what encumbrances might be on title.  

As for public county auctions, that is a whole new ball game as you do not get any warranty deed, instead you receive a certificate of title issued by the Clerk of Courts which essentially is a Quit Claim Deed.  The upside is they are very easy and quick to buy, and you must pony up the cash by noon next day of winning the bid.  The downside is that you inherit any title issues and don't get to inspect the property beforehand. 

There are many forum posts on here to educate yourself, as @Steve Babiak has so graciously compiled:

http://www.biggerpockets.com/forums/41/topics/6897...