All Forum Posts by: Mikey C.
Mikey C. has started 1 posts and replied 5 times.
Post: Buying a house at a foreclosure auction
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Quote from @Nicholas L.:
No it's my first property. I own a townhouse outright. I am in a strong financial situation. W-2 employee. I have a substantial amount in investment accounts(2 commas). No debt.
I found bigger pockets when I met josh dorkin at a financial conference and he loved my rent hacking to aggressively pay off my townhouse. I see this house and I could see myself living there with some rehab.
Post: Buying a house at a foreclosure auction
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Quote from @Jay Hinrichs:
Quote from @Mikey C.:
Quote from @Chris Seveney:
@Mikey C.
1. Title company will check liens
2. Where did appraisal of $330k come from?
3. If it’s worth $330k why would you bid $350k?
Typically forexlosures are worth a lot less than appraised value especially if vacant because amount of repairs can easily be six figures
@Chris Seveney ok got it on the title company. I'm assuming this is done prior to closing for the winning bidder?
2. The appraisal came from the court documents, which is why the $33k deposit.
3. I would bit up to 350k depending on how the walk through goes prior to auction. I have a home inspector looking at the roof and foundation. If the foundation shows any problems, it's 100% pass for me. The house is only 850 sq/ft. There's a limit to how much repairs can cost vs. a complete raze and re-build(will check current regulations to see what they are).
My only concern are the liens and the problems inside. I pass by this house everyday and I know there was someone living there by the car parked outside. Now the driveway is completely vacant.
Why do you think you get a walk through.. that is not done with a true foreclosure unless a door is a jar and you just walk in. Unless this is Hawaii I know that state sets up walk threws
The sign posted on the property said auction at noon. Possible inspection at 10a
Post: Buying a house at a foreclosure auction
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Quote from @Jay Hinrichs:
what state. is this a sherrifs sale or a trustee sale ?
also if the balance was 285k if could be way higher with default interest tax's insurance etc etc. U will have to wait to see the opening bid.
U could order an E an O report for small dollars to check it out..
Or go to the county and run your own search on it. pretty easy to do. U would be tresspassing if you go on the property.. although me personally I never let that stop me.
The state is CT
What is an E and O report? How do I go about this?
Post: Buying a house at a foreclosure auction
- Posts 5
- Votes 0
Quote from @Chris Seveney:
@Mikey C.
1. Title company will check liens
2. Where did appraisal of $330k come from?
3. If it’s worth $330k why would you bid $350k?
Typically forexlosures are worth a lot less than appraised value especially if vacant because amount of repairs can easily be six figures
@Chris Seveney ok got it on the title company. I'm assuming this is done prior to closing for the winning bidder?
2. The appraisal came from the court documents, which is why the $33k deposit.
3. I would bit up to 350k depending on how the walk through goes prior to auction. I have a home inspector looking at the roof and foundation. If the foundation shows any problems, it's 100% pass for me. The house is only 850 sq/ft. There's a limit to how much repairs can cost vs. a complete raze and re-build(will check current regulations to see what they are).
My only concern are the liens and the problems inside. I pass by this house everyday and I know there was someone living there by the car parked outside. Now the driveway is completely vacant.
Post: Buying a house at a foreclosure auction
- Posts 5
- Votes 0
Hello, this is my first post here.
There is a foreclosure auction on a 850 square foot house that's appraised at $330k. The land that the house sits on is 50ft by 300ft. The house on one side is nearly 500k and the house on the other side is about 700k. Both are bigger house though.
I did some research and it seems like the person that lived there owed $285k total and couldn’t make the payments. I’m assuming that $285k will be the starting bid. The foreclosure auction requires $33k deposit to bid in the auction. This place seems vacant and the grass and everything is over grown.
I want to bid in this auction up around $350k. I want some insight on the due diligence on liens. Is calling the town clerk the only way to see if there is a lien on the house. Also I plan to hire a home inspector to inspect the outside of the foundation for any issues.
Any issues with the foundation will be a no go for me. I want the inspector to fly a drone to inspect the roof.
Are there any other things that I should do before hand in term of due diligence?
Thanks