Newbie looking for an advice - online FL foreclosure Auction!

[Angela Kriv]

Hello! My name is Angela. I am looking to invest into some properties in Florida. I would like to stay more or less safe and buy only condos in the area I know. I already own one and love the community. I have a question about online auction. I read couple books, tried to read all I can find online. What I understood that EVERY auction must finish with amount greater than judgement amount otherwise plaintiff gets the property, but this is not the case I am seeing. For example, I see several auction ended today. Judgement amount is $ 53,246.71, winning bid is $25,200.00. And it is not plaintiff, whenever it is a plaintiff it is says on the auction. So it is a third party that got the property. So what is up with this? How does this work? Thanks in advance! Looking for many great suggestions. 

[Andrew Davis]

Hey @Angela Kriv, I believe that the final judgement amount is the amount owed on the property.  With the homes that have been foreclosed on in recent years, banks (plaintiffs) almost never get the judgement amount.  

For example, I recently helped a client close a deal where the judgement amount was nearly $300,000, and my client was able to purchase the property for $95,000.

So to answer your question, it's always a 3rd party (end buyer or investor) that gets the property unless the plaintiff (bank) changes their mind and doesn't go through with the sale.

On many of the auction sites, the plaintiff (bank) can set a minimum bid, or amount they're willing to accept for the property, but again, this is almost always less than the judgement amount or amount owed on the property.

Hope that helps!

Also, since you're new to BP, here are a few tips to help you get the most out of the site and kickstart your investing career:

Start here. You'll get a wealth of REI knowledge and learn how to take full advantage of Bigger Pockets (including how to connect with other local investors).

Listen to the podcasts , get active on the forums & set up key word alerts to be notified when people are discussing topics you're interested in.

Check out the webinars, they are very informative, and there’s usually a new one every week.

I'm an agent & investor in the Orlando area, so reach out anytime. 

I wish you all the best Angela!