Auction Question

[Bob Giddens]

I need some help with a fewof questions regarding a property I want to wholesale. I am new to wholesaling so pardon me. I had worked for a property management firm the past 2 years and now I'm venturing off into wholesaling after the company downsized.

I have an investor through my property management days lined up for a property that fits the exact criteria of what and where he is looking for. Here is where things get tricky.

First can I even wholesale a property that is going up for auction?The house is going up for Auction on July 27. If yes is there anyway I can get this property under contract before July 27 and get this deal done? If so, with whom do I contact to do this?( It says the Trustee is DEUTSCHE Bank National Company) is that who I contact?, If not, let us say it does not sell during the auction, is there anyway I can get a contract on it after the auction?

Also I will post a little info about the house and some other questions I have
The ARV is $299,500
In the newspaper it says Approximate amount of judgment is $354,293.97 plus interest and costs. (Is this what they are trying to get for the property?)
I live in the northeast and it does have freeze damage to the pipes so there is no way I can see them getting even close to the ARV for this place. But it's in a great neighborhood that my investor would be all over if I can lock this down somehow!

Thanks for any help in advance!!
-Bob

[Jon Holdman]

Sounds like foreclosure to me. Those are a weekly occurrence in Colorado. I'lll admit I don't have a clue about tax auctions, though, so, I guess it could be that, too. But "trustee"? Sounds like foreclosure to me.

Bob, You give no clue where the property is located. Foreclosure laws vary WIDELY from state to state.. At least give the state where the property is located.

In most states, foreclosure sales are cash on the barrelhead. If you don't have the cash to close the deal, don't even bother with foreclosure auctions. Here in CO, "cash" means cashiers checks made out the the trustee. On the barrelhead means, in most counties, literally, when you win the bid. They stop the auction and say "show me the money". In a few counties, you have a few hours (less than four) to produce the cashier's check.

The foreclosing lender gets to set the starting bid. If that's really above the value, nobody bids,and it becomes a REO. If the start the bidding lower (usually if they think they can get a deficiency judgment), they may get other bidders.