Hey all, I'm following a home that is being auctioned off by BOA. The home is currently occupied. The title disclosure accompanying the auction indicate that there is a possible bankruptcy filing.
Has anyone here gone into a deal like this? If so, how did you deal with it? Costs?
Homes in the area are selling for just under $200k and right now the going price is $50k (reserve NOT met). Thanks,
Bankruptcy? They are trying to stop or stall the foreclosure sale.
That could be a long process. Just like a short sale. Its a waiting game. Its low to get more buyers involved in the purchase of this house. That is the idea of an auction. To get people emotionally involved.
Assuming this a REO, not a short sale...You don't care about the BK, that was in the past and obviously the bank got it foreclosed and took title. As for being occupied, knock on the door, feel out the tenants. It may be empty. We're bidding a gangsters.com auction tomorrow, it said owner occupied, do not disturb, criminal trespass, etc. .....the condo is empty, got a pretty good look through the windows.
I know this post is old but I bought an occupied auction house through a local auction company. The previous landlord went through a bankruptsy and 150 properties of his was auctioned off. I ended up winning the bid and buying the house.
It turned in to a complete nightmare. The tenants refused to leave and it took me 4 months of going to court to finally get them out. They ended up appealing the case and taking it up to circuit court. Complete waste of my time and money. We spent $5500 btw lawyer fees and mortgage payments and only got back $2800.
When I first presented myself I tried to do a cash for keys and they said no. Then I said you can stay there for a month for free just be out in 30 days. They agreed but lied. Never paid me a dime. Turns out they were section 8 trash and their sect 8 status ran out right when closed on the property.
Just be careful
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing