How Do I Buy The Foreclosure Down The Street?
Tiffany called me a few days ago to ask me how she could buy the foreclosure down the street from her in the Gilbert subdivision of Val Vista Lakes.
She had noticed the real estate foreclosure notice taped on the front door of the home in Val Vista Lakes and wanted to know 1) what would the home sell for 2) what did she need to do to buy it?
Tiffany's first question...What will the home sell for?
When real estate in Maricopa County goes through foreclosure it is put up for sale at a foreclosure auction. Most foreclosure auctions in Maricopa County happen on the courtyard steps in downtown Phoenix.
The opening bid or price of the real estate property will be the amount owed on the property plus any fees and or expenses incurred during the foreclosure process (ie. bank late fees, attorney's fees).
There is one caveat to this...If there is a second or third mortgage on the real estate property a representative from that company will have to show up at auction to "claim" their portion. If they do not show at the real estate auction the second or third mortgage will simply go away.
As for Tiffany's second quesiton...what do you need to do to buy a foreclosure?
In the Phoenix Valley if you want to buy a true foreclosure real estate property you need to show up on the Maricopa County courtyard steps on the date and time of the foreclosure with $10,000 cash.
The auctioneer will have a role for you to sign in on. They will require you to show them your $10,000 in order to put your name on the role. Once the real estate property that you are interested in comes up the bidding will begin at the amount owed on the home.
The highest bidder will win, or buy the property. If you are the highest bidder in the Phoenix Valley the auctioneer will take the $10,000 in cash that you brought with you, and the remaining balance on the house will have to be paid in full by 5:00 pm the next business day.
In the Phoenix Valley if you do not pay the remaining balance owed for the home by the next business day at 5:00...you will lose the house, and your $10,000.
Let me answer a few questions you might have after reading this.
1) Yes, you have to pay for the property in full (with cash) by 5:00 pm the following business day.
2) There is not a property inspection period, if there are any problems with the property...they are now your problems.
Buying a true foreclosure is risky business. My advice is to let it go through foreclosure and back to the bank. Once the bank owns the real estate again they will put the home up for sale for what they perceive "market value" to be.
It will be a little under what true market value is...so you will still be buying discounted real estate. Also, you will have a 10 day inspection period so you can have the property inspected and cancel the real estate contract if anything big comes up!
Date: Thursday, March, 13th 2008 @ 02:00:23 PM
Views: 115
Be the First to Comment on this Post!.