Tips For Buying Foreclosures At Auction

[Kristopher Ames]

Hello BP Nation, I am currently looking to bid on a foreclosure property that is coming up for auction at a sheriffs sale. My question is what steps should I take to mitigate risk. The sheriffs sale states the judgement against the property is for $87k. Is this the minimum amount I can expect to pay? Could their be other liens against the property not included in the 87k that I would be responsible for? Where is the most reliable source to get this information? The property is a 2 bed cabin with detached garage on 2 acres with a river view in a vacation area with higher property values for the area. My plan would be to BRRRR the property using a 401k loan to purchase, cash to rehab, and market it as a short term rental but the numbers would have to work as a long term rental as well.

[Tim Herman]

@Kristopher Ames what position is the lien being foreclosed. If it is the first all other liens will be cleared by the foreclosure except for property tax, or IRS, Some jurisdictions hoa lien survive. The lenders normally credit bid the amount owed which in this case is 87k.  Don't know if Wisconsin has the right of redemption which gives the homeowner so long to pay back everything and get the house back. A title search will clarify which lien is being foreclosed. Most foreclosures require cash on the day of the auction.