All Forum Posts by: Peyton LaBarbera

I was wondering if when I buy a property at the auction and the right of redemption period is let's say 6 months can I sell the property once I have finished my renovations (fix and flip exit strategy) or do I have to wait until I am in full possession of the property after the redemption period has ended in order to transfer the deed?

Thank you to all who reply

0 Votes

Quote from @Kevin Sobilo:

Quote from @Peyton LaBarbera:

@Kevin Sobilo, to clarify does the reserve price simply mean the starting bid or is it the winning bid?

There is no reserve price in my market. There is however an "upset price" which is an UNOFFICIAL bid made by the lawyer representing the lender that foreclosed. Basically, they are saying they will bid up to AT LEAST that price so unless you are willing to exceed that its not worth even bidding. Many times, this dissuades ALL bidders and the lender buys the property back for the minimum bid which is a small nominal amount.

Since this upset price is UNOFFICIAL, I have actually seen the lawyer LIE and watched as a bidder bid a LOW amount and the lawyer did NOT bid up to that upset price against him. So, that shrewd bidder got it for the lower price.

With regard to deposits, the deposit in my market is based on the price of the winning bid.

The deposit based on the winning bid makes the most sense in my opinion too, thank you again for all of your helpful insight.

1 Vote

@Kevin Sobilo, to clarify does the reserve price simply mean the starting bid or is it the winning bid?

0 Votes

CT is where I am located and for this state it's 5% EMD and the rest no sooner than 21 days but no later than 30 (that timeframe is when the closing process with the seller/borrower will take place)...But since my state has a judicial foreclosure process and every step must be court-approved I just wasn't sure if I have to put down 5% EMD before it gets approved or after

(I want to note that the clock for the 21 to 30-day timeframe to close doesn't start until the court approves the sale)

0 Votes

Quote from @Kevin Sobilo:

@Peyton LaBarbera, I suggest being more specific. Also, I'm sure most auctions of any type have this type of info available to review.

Do you mean a sheriff's sale aka auction on your courthouse steps? If so, which state(s) because I'm sure each differs. In fact, even different counties or cities within a state might differ somewhat.

Or do you mean auctions of foreclosed houses where the lenders who end up with the houses auction them off? Online auctions such as auction.com or hubzu.com or even in person auctions.

I was talking about on the courthouse step auctions (foreclosure auction not foreclosed auction)...I don't need an exact I just need an average as this isn't for any current deals just taking notes

0 Votes

At which point in the foreclosure auction process (Let's say once I am the winning bid on the property) do you have to put down an EMD?

And just checking, is the EMD requirement for foreclosure auctions 5% of the total reserve price?

Thank you.

0 Votes

Quote from @Account Closed:

Quote from @Peyton LaBarbera:

Quote from @Account Closed:

Quote from @Peyton LaBarbera:

What are some of the differences between all three of these types of properties?

pre-foreclosure means a notice of default has been sent
foreclosure means a sale date has been set
Auction is the actual auctioning of the property
REO is Real Estate Owned - the bank won the auction

What happens when the bank wins the auction... does it go onto the mls as an reo property?

And does the bank always win the auction?

I made my first million buying Preforeclosures and have dealt extensively in the field and teach the techniques. The bank will bid the amount they are owed. If no one else bids higher, or bids at all, they get the property. But, they don't want the property. They are not in the business of owning property. They are simply trying to recoup their money. Then, they do a bunch of internal hokie pokie stuff inside the bank and put the property on the MLS and hope for the best. There are opportunities at each step of the way for those that know what they are doing and have some money to work with.

Thank you for replying so fast I really do appreciate that but I just have one more question, you probably didn't see it because I edited the post right after you replied to the unedited version but here it is...

Can you buy a property before the auction date or is that auction date a set in stone one and done day available for buying that property?

Thank you again Ken

0 Votes

Quote from @Account Closed:

Quote from @Peyton LaBarbera:

What are some of the differences between all three of these types of properties?

pre-foreclosure means a notice of default has been sent
foreclosure means a sale date has been set
Auction is the actual auctioning of the property
REO is Real Estate Owned - the bank won the auction

What happens when the bank wins the auction... does it go onto the mls as an reo property?

Some other questions I have... Can you buy a property before the auction date or is that auction date a set in stone one and done day available for buying that property? and... Does the bank always win the auction or do they have a max bid that they are allowed to go up to?

0 Votes

What are some of the differences between all three of these types of properties?

0 Votes

Is there a difference or are these the same?

Thank you

0 Votes

All Forum Posts by: Peyton LaBarbera

Peyton LaBarbera has started 41 posts and replied 140 times.

Post: Statutory Right of Redemption Question

Post: EMD with Auction Properties Question

Post: EMD with Auction Properties Question

Post: EMD with Auction Properties Question

Post: EMD with Auction Properties Question

Post: EMD with Auction Properties Question

Post: REO vs Foreclosure vs Auction?

Post: REO vs Foreclosure vs Auction?

Post: REO vs Foreclosure vs Auction?

Post: What is the difference between ROE and Equity Multiple?