Auction tip...learn from my experience

[Marian Smith]

Just wired funds to close on my second auction purchase...2 years after last auction purchase. Yea! My beef: To add to the 1) exorbitant 2.5k auction fee (which I got mostly back at auction close on my first auction because I had a contract with a realtor that if I put him down as my buying agent he would take $500 and refund the rest of his commission to me). 2) no way to verify if you are bidding against another investor or the bank itself, ADD 3) if you use their title company they pay title insurance...fairly good deal with a foreclosure as the foreclosure process in Texas wipes out all liens in almost all cases BUT what happens is their title company (themselves by another name in both my cases) charge a settlement fee equal to the title policy and closing fee charged locally (in my case $100 more). So my 49k purchase had a $900 "settlement fee." On a state regulated $519 title insurance policy deal. So, for future reference, total cost at auction will likely always be all the fees the auction site discloses up front plus title and closing fee...in addition to purchase price and all the usuals.