Foreclosure Auctions From start to finish already funded.

[Luis C Ceniceros]

If there was a Foreclosure Auction checklist that one must do for a successful clean transaction, how would it look like?

from finding the property, evaluating property , to making sure the paperwork is clean with no surprises at the end. 

[Chad U.]

Originally posted by @Luis C Ceniceros:

If there was a Foreclosure Auction checklist that one must do for a successful clean transaction, how would it look like?

from finding the property, evaluating property , to making sure the paperwork is clean with no surprises at the end. 

Here is one that I developed a few years ago when we used to bid at Florida auctions (Can't get formatting properly):

1

Property Search & Filter Search properties a minimum of 5 days in advance, valued between $XXK and $XXXK

2

Review Crime Reports

Avoid high crime and high vacancy areas

3

Determine ARV

Make an informed decision of the Fair Market Value/After Repair Value based on comparables, tax assessment and physical condition

4

Enter Property Data into System

Record ARV, Assessed Value, Sq Ft, No. Beds/Baths into spreadsheet/software

5

View properties

Drive by properties, take pics and view inside windows (if not occupied)

6

Is Property Occupied?

Determine if property is still occupied, research if tenant or owner

7

Estimate Rehab

Estimate approximate rehabilitation costs based on drive-by (and can view inside windows)

8

Research Title

Search title making sure that the deed being bid on is for a first mortgage, not 2nd or HOA or Tax Lien. Do CODE VIOLATION SEARCH.

9

Calculate MAX Bid Price

Once the properties are filtered with the above criteria, set the max bid price between 60% and 75% of Fair Market Value or ARV

10

Bid Strategy

Determine the low starting and maximum bidding amount, to be agreed by GENERAL PARTNERS

11

Bidding

Ensure 5% of max bid price is in County bidding bank account 3 days prior to bidding

12

Property Win Bid

Ensure funds are wired to County bank within 24 hours of WIN

13

Send File to Lawyer/Title Search

If property is still occupied, have Legal file a “Writ of Possession” to get former owner removed, Perform Extensive Title Review, Negotiate any existing Liens

14

Receive Title

Receipt of Certificate of Purchase, Certificate of Title to occur within 3-4 weeks from date of winning Bid, continue follow up with County until received