Buying at Auctions
Tell me if this all makes sense for buying/selling foreclosures from auction:
County rules:
Drive by appraisals
Deposit due at end of auction
Can bid for other ppl
Name for deed due at end of auction
Full amount due 50-60 days later
Starting bid 2/3 of appraisal value
Look through Sheriff's auction listings to find workable properties. Stick to properties with $1k deposit.
Start marketing and provide address and pictures to ppl that respond, reminding them to respect the fact that the property is occupied.
Filter out buyers to serious buyers. Verify funds/preapproval. Explain to them who I am and what I do. Sign contract stating they agree to pay X by XX/XX/20XX and that the property is as-is contingent on winning bid (maybe phrase like "contingent on release from foreclosure by Justin H"). Perform title search. Provide results. Let them know they will need to go with you to the sheriff's office within 60 days to release home from foreclosure for Y (bid amount) and pay the difference to you.
Go to auction, bid enough to win but still have a gap between agreed price and bid. Pay deposit, give them buyer's name. Plan on when to head to sheriff's office and buyer brings 2 checks. One for bid amount, one for my payment. Done.
My concerns are:
Will lenders allow purchase from auction?
Will lenders (not cash end buyers) provide 2 checks?
If not, if "overpay" sheriff, will they refund remainder?
I'm going to call and ask different banks and sheriff's office to get responses.