All Forum Posts by: Mat O'Grady

@Ralph Bednarczyk

Have you gone to jud.ct.gov? Is that where you are seeing the auction listed? If so, click on the docket number. Then click on "Back to Case Details." There should be a list of documents for the foreclosure. Find the foreclosure worksheet and that will provide you with the amount of debt on the property and the appraisal value.  

I believe the starting bid is usually enough to get the bank back to even, so it is normally close to the amount of debt that is being foreclosed on.

I believe all of the auctions through Jud.ct.gov are assigned lawyers at random from a list they signed up on. I do not believe they represent the bank other than that they are paid to run auction process. 

You should call whoever his listed and they will give you more information about it. 

@Ralph Bednarczyk

At all the auctions I have gone to, which is only 5 or so, there wasn't access to the house. It says you have the two hours but they usually don't give you access because they don't have keys or there are still people living there. 

I have never seen a bank representative at the auction. I believe the starting bid is the lowest the bank will take and the bank starts with that bid. If no one else bids, the bank buys the house for that bid, so yes, it goes to REO.

@Ralph Bednarczyk

From what I have seen, the starting bid is chosen by the bank. You can call the lawyer handling the auction the day before to get the starting bid. The lawyer does not have anything to do with setting the bid so the condition of the property on the day of the bid doesn't affect the start bid. 

I have never seen the end bid lower than the starting bid. The starting bid is from the bank. Most of the time, the house sells for the starting bid because there is no room to make money for investors. You need to do some research on your own before the auction to see if there is a potential deal. I have only seen a few houses that made sense to go to the auction and when I have gone, there were multiple people at the auctions bidding.

Deposit is 10% of the appraised value and usually, the appraiser has only done a drive by appraisal so you don't know the condition of the inside. 

I have heard about people being able to get a look at the inside of some of the properties for auction, but a lot of the properties are still occupied by either tenants or the current owners and they are not willing to let people walk around inside. 

I haven't actually bought a property from one of these auctions but, I believe if you win the auction, you sign the deposit check off to the lawyer and you have 30 days to pay the remaining balance. I would think that getting a mortgage from a bank on a property you cannot inspect in 30 days would be difficult. If you don't pay the full amount in 30 days, you lose your deposit. 

@David Pereira

I like the CT market, but it is mostly because I live here, haha. I don't think I could handle not being able to see my properties and making sure they are still standing. Faifield County is much more expensive than New London County. You could probably find deals toward Bridgeport, but you need to find the good areas. 

Hello David,

Welcome to Bigger Pockets! It is a great source of education and networking. I am located in New London County. I am mostly a buy and hold investor. 

@James McGovern 

Hey James, if you are looking at Auction.com and seeing that the bids are going higher than what makes sense, I have found that the seller is bidding as well. On some of the auctions, there is a button that you can click to see the bidding history. I believe you need to be registered for the auction. I have clicked on it and seen that the seller is bidding up the price. I have seen most properties usually go on and off auction multiple times. I believe they lower the reserve price each time but not by much. If you think the property has potential, keep your eye on it and keep registering for the auctions and bidding what you want. I have had the auction companies call me and ask me if I will take a different price after the auctions end. 

Sounds like this property would be a lot of headaches, so not worth the time and effort. I have found the vacant properties could be good deals. You can also drive by properties that are listed as occupied and see if they are actually occupied. Sometimes, the site says they are occupied and they aren't. That information could be an advantage for you to know. 

@Joan Damasco It was simpler than I thought it would be, but you need to put in the work!

@AJ Stanis

Hello Aj,

Usually, you need to check local regulations specific to each town. Google Madison Zoning regulations and you should be able to find information. You will need to know what zone your property is in. If you don't know, you can google "Madison Vision Appraisal" or "Madison GIS." From there, you should be able to put in the address of your property and find the property card. On the property card, you should be able to find the zone your property is in. 

Good luck!

@Dan Thomas 

Thanks, good to know!

@Mckenzie Jean

Search banks and credit unions in Meriden on google and call all of them and ask what they have. Talk to both the commercial departments and residential departments. I believe PenFed was doing them nationally at one point, but I am not sure if they still are.