Foreclosure Auction Advice
First time poster here at Bigger Pockets and I have a rather basic question which has vexed me for some time. Want to see if anyone can shed some light on strategies to use in foreclosure auctions.
It's common sense to expect some sort of discount when purchasing foreclosed properties at an auction. You aren't able to view, or inspect, the property and most of them are in variable sets of disrepair. Compound that with the fact that you need to come with cash/certified check to these auctions (at least in our county) and you have to further research potential title defects and/or building department/code violations I would think that you'd need to purchase these buildings at 50%-70% (complete off the cuff estimate) on the dollar to make this kind of venture profitable.
That being said, currently every single property that I see is being foreclosed on for a ridiculous sum (most at least double the assessed value of the property), and it appears as if 98% of these properties are won back by the Plaintiff (the Lender).
Is this just a national problem, which make foreclosure auctions more difficult to maneuver? I've been watching for a couple of months and I just don't see where the value is.
I wanted to research these auctions, and then get involved, but it seems to be a gigantic waste of time and effort, for something that you are going to be outbid for anyways.
Any advice?
Thanks in advance!