Anyone purchasing at cash auctions?

[David Hush]

Considering cash auctions but making sure facts are in line. What should be done before biding?

[Jay Hinrichs]

Originally posted by @Greg Dickerson:

I’m not a fan of auctions. You never know what your going to get and the previous owners can come back and file actions against the lender claiming wrongful foreclosure.

Auctions are very state / market specific.. is it a mortgage judicial or a trustee sale huge difference.. 

I have never had a borrower come back and sue.. the worse case is they throw a monkey wrench in within hours of the sale and the trustee or sherrif simply sends your money back.. so you have wasted huge amount of time effort only to not get the deal but you don't lose money

you lose money by not knowing lien position  IE bidding on a second thinking its a first..  or house is destroyed on the inside.

But the biggest issue your going to have is Competition.. in all markets there is a cabal of locals who have been doing it for years and years .. you will not get a screaming deal.. they wont let you.. 

you can hit up small out of the area counties and those can work.. but any major MSA there is already folks way ahead of you.

its highly regional and right now especially on the west coast foreclosures are at an all time low.. many many companies have pivoted and while still attending and buying they are not finding enough deals to run their companies and have had to find other ways to secure inventory. 

This is a very high risk way for the average investor to acquire property.. if you go on the Auction site like Auction dot com those are post sherrif sale or trustee sale and you get title insurance you may want to start by bidding on that site before you even attempt courthouse steps.