No viewing, Occupied Foreclosure Auction

[Preston C.]

Anyone have experience bidding on/buying a property that doesn’t allow viewings or have interior pictures because it is occupied? I found a house I am interested in buying and the auction is on Hubzu, but I’m a bit nervous about bidding or trying to buy this without knowing what the condition of the inside is like. Bank has owned for 3 months but the previous owners still live here and even have their Christmas tree up (so I’m assuming they don’t plan to get out soon). Would it be worth knocking on the door and asking to view it or asking about the condition? I’m worried they would be hard to evict if I did end up winning the bid.

[Aaron Poling]

This is fairly common with many foreclosures and auction sites. It is obviously risky to purchase without seeing and inspecting the property so factor the risk into what your final bid will be. I don't recommend approaching the tenants, most likely in the auction site it prohibits it. Also, from my experience owners that are getting foreclosed on aren't overly helpful to prospective buyers. Also if you win the bid and have to foreclose on them it is best not having personal contact, especially if you have to see them in court. 

Purchasing these kind of properties come with a huge discount on purchasing. You get the discount because of the added risk and because you will get stuck evicting the tenants. It can be a lot of hassle, but a great way to buy properties with potential equity. 

Good Luck!