Tampa, FL · Member since 2014 · 169 posts · 164 votes
Hi Everybody--
I've been watching and researching the foreclosure auctions in Hillsborough County (Tampa, FL area) for the last several months and think I'm ready to move to the next stage-- POSSIBLY bidding! ;) And, believe it or not, that's a big step up from the "Holy Crap No Way That's Crazy I'm Going to Lose All My Money and My Kids Won't Go to College and I'll Be a Failure" stage I was at previously.
I'd like to connect with others in the Tampa area who have experience purchasing homes through the Hillsborough foreclosure auction. Free coffee is involved.
Hi Mark. I don't need free coffee but meeting sometime sounds great! I've reached out to several investors in the area and met up with them. It's nice to meet new folks and see how I can help them. My experience with the Hillsborough county foreclosure site has been about the same as it was for Pasco. They use R4C to dispose of the properties. I usually see the house is bid up to 90%+ of its market value or it goes for a ridiculously low amount. I have never seen the bids stop in the middle.
Typically the reserve is set for the amount of money due and all other fees incurred. In Hillsborough and Pasco some of these reserves are so low this can't be the case. If it were one-off's here and there I'd think it was just someone who had paid off a large part of the house and was just losing it but it happens frequently. I just don't think there are that many who pay off that much and then just let it go.
I think the Trustees keep the numbers low to entice and do not start with the amount owed but try to get it up to that amount. That is their job after all as they act as a fiduciary principal to the borrower. If no one bids at a crazy low price I imagine the trustees feel there is no demand and obviously aren't going to bid against no one and it goes REO. Other times I see it start low and get to 90%+ of market value. Checking the court records and driving by these homes after they have sold nearly everyday afterwards you can see the U-Hauls and very quickly determine that it was purchased by an owner-occupant. They are thrilled to get a 120K house for 105K. From an rehab and sell investor point of view we just can't compete with these buyers.
If you bid on something low and keep bidding the trustee never leaves it low that I have seen, hence no winning bids in between market price and very low starting balance. They always have the winning bid until the bid equals or exceeds the debt associated with the property. There could be exceptions but I have never seen them, maybe you have and that fuels your excitement, understandably so.
Want to meet some time and share some information?
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
10y
I definitely would like to meet some Tampa folks too so let's plan a Tampa meetup. Want to do a Thursday night or a Saturday? Thursday nights are usually good as restaurants aren't overly crowded. I'm in the Westchase area. If guys want to mention the neighborhood they're from, we can pick something generally centralized.
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
10y
Btw, I've done 1 foreclosure in Tampa and have found it to be a very interesting flipping market but I do not like how heavily pro-tenant the law is here. It's a little ridiculous. I would like to meet folks into the vacation rental market as an "exit strategy". That is interesting.
Investor · Palm harbor /tarpon springs, FL · Member since 2015 · 39 posts · 9 votes
10y
Hello, I'm very interested in meeting as well, I would like to hear more about the auctions in pasco and Tampa as I'm looking to do a few deals this year myself. I want know about the foreclosure websites and how to look those up too.
Also I want to know if anyone has any insight with wholesalers, I've come across a company called "Net worth realty", they seem legit but I don't know.
Any insight is what I need, I do the actual flips, and know the business like know other, I just haven't found and bought any properties myself.
Thanks, Mike S
Professional Auctioneer · Baltimore, MD · Member since 2015 · 1k+ posts · 1k+ votes
10y
Foreclosures Auctions are a great way to buy and create cash flow and equity, but as you know you need the cash to buy and pay settlement cost.
Be prepared when considering purchases at the court house steps, do your home work first:
Years ago I would go to the court house (before computers and the internet came into my life) to look at the foreclosures filings. They were written in hand in a big book at the court house.
I would than drive to every property, find the deeded owner and inform them that a foreclosure has been filed. I would approach the mortgagor (owner) and let them know as a private and public service I am informing them that there is a problem.
They appreciated the advance notice and information. I was able to give them a warning, and was in a position to negotiate a purchase or refer them to someone who may be able to help them.
I would explain their rights and what they could do to delay a foreclosure auction sale.
They could:
File a counter suit if they feel they have been wronged, that the bank did not credit payments on time. Delay the F/C action
Ask for a review of the API that was calculated. Often times the API has be miscalculated. Delay
Ask for a full accounting of charges and a complete summary of how they arrived at those charges. Many times there has been mistakes made. Delay
Find and read local foreclosures laws, look for mistakes made
Look for mistakes made by the mortgage broker, lender or title company
Check the spelling of all owners names and description of the property, are there mistakes? Delay
Ask for mediation
Ask for financial counseling
Ask for reinstatement and add the late charges to the back of the mortgage
This was years ago. Many of these owners appreciated the advanced notice and were able to solve their problems. Some of them did business with me.
Always check the local foreclosure laws before approaching owners in foreclosure.
The Universal Law of Reciprocity always works. Give help to others and it will be returned to you sometime soon.
Rental Property Investor · Plant City, FL · Member since 2015 · 1k+ posts · 379 votes
10y
@Michael Schueler welcome to BP, Networth realty is a large full service wholesale company. Them just like any other wholesaler (including myself) you should run your own numbers. If you don't already have a contact at Networth message me and I'll send you a guy there I trust.
@Mark J. looks like you've become the new BP meet up guy for Tampa area. If you are going to purse this I don't mind helping.
Property Manager · Tampa, FL · Member since 2016 · 34 posts · 25 votes
10y
Mark, I know how you feel. I used to bid on the auction when it was held in the Courthouse. It's a little bit easier online. Here is a link to a service that researches the title for all properties coming on the Auction. Pretty much everyone I know uses it because even if you know how to do your own title search you will not have time. I am not connected to this service in any way but I would buy without it. Also, make sure you inspect the properties you are interested in. Good Luck!
Wow, reading all this wealth of information and knowledge is making this newbie's head spin. I don't know some of the acronyms used for ex. REO? @William I read your post and I am considering bidding on a property but I have questions on how to analyze how much is to much? Should I use my own cash or leverage my cash? I read BPs Ultimate Beginner's Guide to RE Investing it was a significant help in understanding the process. I really like the Real examples they give. Can someone do the same on the process of bidding on a foreclosure....in other or how much is it worth offering etc.
Tampa, FL · Member since 2011 · 35 posts · 0 votes
9y
A meet sound awesome as I know this thread is a little old. Does anyone know how to get a list of address for all upcoming auctions? Can't seem to find one online in the bidding portal website.
Hello, I would love to connect with you. I am new to real estate investing and looking for properties to build my portfolio and looking to connect with some people who have experience in the area. Thanks
Clearwater, FL · Member since 2017 · 4 posts · 6 votes
9y
@Joseph L. Doesn't look like you got a response and your post is a little old, but I will use this opportunity to make my first BP post. I am just starting out at this, but I can tell you that for Pinellas county, you can use the site below. I assume Hillsborough is similar.
Investor · Tampa · Member since 2019 · 1 post · 0 votes
6y
Hi all, I'm a novice but trying to get started. Question. If you when a bid on a property and there is still a balance left on the mortgage. Do you have to pay the mortgage off of do you buy the property for you bid price?