I just bought a property on the courthouse steps for $21k. Auctioneer advised me the title will be mailed to me within two weeks.
What’s should be my immediate first steps?
Can I still choose my own title company to close the transaction?
What is the best type of insurance coverage for this situation?
Are home inspectors able to write a report saying the property is up to code? Or does the county have to?
Not sure about Missouri, but typically there is no "closing" with a courthouse auction......you pay the money, you received a deed at some time. I assume you did some kind of title search? If not, get one now. If you did, and you want title insurance, you can buy it. Your insurance depends on what you're doing with it.. For a flip, get builders risk insurance.
Wayne is right, the "closing" came when you paid for the house at the auction. You will get the trustee's deed sent to you within a few days or maybe a little over a week.
One of my first steps is always to change the locks, just in case the previous owners try to return and want to mess the place up worse than it probably already is.
As for insurance, just make sure that your carrier and agent know that it is vacant because if they find out later that it is, they can cancel your policy.
First, there is not a title company, you own the house with all title defects the foreclosure did not fix. You win the bid, you pay the money and the attorney mails you the deed. Usually they record it.
My first process was to secure the property. If it's vacant we drill the locks and take possession. If it's open we lock it up.
If it's occupied we reach out to the occupant to find out their status and
1) Pay them to Move Out
2) Post pay or quit notice in preparation for eviction
3) if it is a tenant, and I want to keep them, notify them I am the new owner and have them sign the lease.
I would verify with a local attorney to get the details on how you evict someone and what you might need to do to work with a current tenant.
Get the property insured - if its vacant, you want a vacant policy if it is occupied a landlod policy.
You sure can hire an inspector to inspect if you would like, but the county does not care.
And based on your questions, I would suggest a little training on buying houses at Auction - I know Auction.com is planning a free workshop sometime in the next month or so.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.