sgu11
Posts:4
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| 02/03/2010 2:25 PM |
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We are interesting in purchasing an investment property from the foreclosure auction. Did anyone have the experience at San Diego court yard? Please help us on clarifying the following questions:
1 Does the winning bidder need provide all fund in cashier's check? Since we do not know the final bid before hand, how do you prepare the check? Will the auctioner provide cash change if the winning-bid amount is < the check $$?
2 How can you check the linens against certian properties? in particular about federal and state income tax?
3 If the current owner who ...
• has 2+ loans
• has no liquidation on the property (the amount owed is much more the auction amount)
• owed Fed tax linen
• got foreclosed on the 1st loan
• got the auction amount + 2nd loan higher than market value
will Fed tax linen be wiped out or IRS still want to buy back?
Thanks very much in advance!
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BullBull
Posts:192
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| 02/03/2010 3:13 PM |
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You mean the courthouse steps, right?
Anyway, here's an equally rewarding way to spend your time and money:
Go to your bank.
Make a cash withdrawal of the amount you want to spend.
Go home and turn on the cold shower (you don't need to take your clothes off).
Tear up the dollar bills and let them run down the drain.
No, seriously: if you haven't done this before and have to ask this many questions: don't do it.
You can take classes at:
http://www.foreclosureforum.com/
... but buying at the the courthouse steps is like swimming with alligators. You might get away alive, but chances are you don't.
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JAP
Posts:119
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| 02/03/2010 3:41 PM |
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| Stay away form those courthouse steps... You bidding against "shill" bidders. |
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sgu11
Posts:4
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| 02/03/2010 3:50 PM |
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| Thanks BullBull and Jap. Sound very risky... I might need to take the class first. |
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mastergpat
Posts:10
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| 02/03/2010 6:19 PM |
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| Where do the properties come from? The banks trying to move REO, or the state with overdue tax liens? |
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wilson
Posts:1696
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| 02/03/2010 6:52 PM |
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Usually banks moving REOs. County tax liens can often pile up for quite a few years before action is taken. They know they will get their money eventually when a property is sold, to clear the title.
I've known owner/developers to ignore taxes on vacant land and just plan on paying back taxes and penalties when they sell. They don't want the expense outflow when they have no income on vacant land. They even do this in good times.
Are linens anything like liens? |
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UCGal
Posts:29
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| 02/03/2010 7:25 PM |
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I've been considering (and researching like crazy) going this way for the right property.
You bring a cashier check... they refund the "change" a few days or a week later... Some people get staggered cashier checks.
You need to research the title ahead of time... You will be responsible for mechanics liens, tax liens, etc. You can get this information by looking up the owners name in the online county recorders database.
You need to do a site inspection (as much as possible) ahead of time... no "contingent on inspection and clear title.". If you win the bid - you're responsible for liens on the title (outside of the mortgage), broken pipes or cracked slabs... the whole kit and kaboodle.
The trustee sale (courthouse steps) is the last step before the bank takes ownership... the bank that is forclosing sets the opening bid price... sometimes they price low and you can pick up a bargain... sometimes they set too darn high. In the latter case, it goes back to the bank.
If you're seriously considering it you should definitely check out the auctions. Go down to the downtown "Hall of Justice"... it's literally on the steps at 10am every weekday.
I'm not sure about "shill bidders". These bidders are real, and many are professionals. They aren't bidding up the price just to get the price higher - because they would be stuck if they mis-step and win. But these pros have resources that most of us don't...
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chaozz
Posts:414
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| 02/03/2010 7:47 PM |
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the guy speaking of shill bidding is someone at the court house and trying to keep you away.
If bank had the time to shill bid then why would they unload property at a fraction of the cost to investors.
what ever area your looking at try to hit up short sales and take notes of future property that may hit
the court house.If one does and the people live there..offer them money not to trash the place on the way out.
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wilson
Posts:1696
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| 02/03/2010 8:06 PM |
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I agree that you will not see shill bidders at courthouse step auctions. You may see shill bidders at REDC auctions, though. There have been articles and postings that they try to boost bidding above a hidden reserve price.
Auctions on the courthouse steps are not rigged. Any bid might be the weiner. |
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sgu11
Posts:4
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| 02/03/2010 9:03 PM |
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| UCGal: Thanks for your reply. Which tax liens does the winning bidder need to pay: properties tax, state income tax, or federal tax, or all above? In addition, what does mechanical lien include? |
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mastergpat
Posts:10
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| 02/04/2010 4:34 AM |
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| Did every property that is advertised as REO already go through ah aution? |
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vegasandre
Posts:41
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| 02/04/2010 12:20 PM |
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Questions answered:
1 Does the winning bidder need provide all fund in cashier's check? Since we do not know the final bid before hand, how do you prepare the check? Will the auctioner provide cash change if the winning-bid amount is
YOU WILL NEED FULL FUNDS IN FORM OF CASHIERS CHECKS. I USUALLY PRINT THEM IN VARIOUS AMOUNTS FROM 100K DOWN TO 1K. YOU WILL BE REFUNDED THE DIFF IN A FEW WEEKS
2 How can you check the linens against certian properties? in particular about federal and state income tax?
HAVE A TITLE COMPANY CHECK THE LIENS FOR YOU . HERE IS A EXAMPLE OF A REPORT I GET.
7921 Golden Star Avenue Delinquent Taxes 1,604.10
1st DT in default
Sewer Lien 11/24/09 $202
5109 Forest Oaks Drive
1st DT in default
8744 Autumn Valley Avenue
1st DT in default
HOA 8/25/09 $633
Sewer Lien 12/30/09 $298
3 If the current owner who ...
• has 2+ loans
• has no liquidation on the property (the amount owed is much more the auction amount)
• owed Fed tax linen
• got foreclosed on the 1st loan
• got the auction amount + 2nd loan higher than market value
will Fed tax linen be wiped out or IRS still want to buy back?
MAKE SURE HAVE TITLE CHECK THE IRS LIEN. THE IRS HAS 120 DAYS TO BUY THE PROPERTY AFTER THE TRUSTEE SALE(IF ITS WORTH IT TO THEM) I USUALLY STAY AWAY FROM HOMES WITH IRS LEINS.
ALSO:
- THERE ARE NO SHILL BIDDERS.
-MANY ARE PROFESSIONALS AND THIS IS THEIR FULL TIME JOB.
-THE PROFIT MARGINS ARE DECREASING DAILY AS HOMES GET BIDDED UP
-3/4 OF TRUSTEE SALES ARE POTPONES OR CANCELLED
CHECK OUT VARIOUS POSTING SITES FOR UP TO DATE INFO ON CANCELLATIONS AND OPENING BIDS
HERE IS THE SITE THAT HAS MOST OF THEM AND ITS FREE TO SIGNUP.
http://www.lpsasap.com/login.aspx?returl=/ts.aspx
CHECK OUT MY EXPERIANCES AT THE LAS VEGAS SALES WHICH IS SIMILAR TO THE SAN DIEGO SALES (MATTER OF FACT SOME OF THE SAME PEOPLE)
http://vegasbubble.com/2010/01/27/a-scene-from-the-movie-aliens-better-known-as-the-clark-county-trustee-sale/
Thanks very much in advance!
[b] [/b] |
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sgu11
Posts:4
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| 02/04/2010 1:23 PM |
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Thank you so much vegasandre!~ I really appreciate you taking time to answer my questions. It sounds no easy money to be made everywhere :-)
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chaozz
Posts:414
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| 02/04/2010 10:37 PM |
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| If you wanted easy money you just had to buy a house a couple years ago then just stopped paying your house payment and live pretty much free for a year or more.or even better been a investor that was renting a few property's collecting rent on places they where not paying for.With not much to worry about anything ever happening to them.Better then being a drug dealer. |
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