Anyone done a California Auction

[Alissa Wylie]

Hello,

We have rentals in California and Ohio both single family and duplexes.  I am ready to purchase another and looking at going thru the Auction.com,  would love some insight and to hear from an investor who has gone this route in California.  

[Jay Hinrichs]

Quote from @Michael Ferraro:

Investing in California  is going to become harder. AB 2424 (Schiavo) takes effect on January 1 2025. This bill is misleading as it states it's to help the individual  losing the house by giving them the equity.  The bill states the Auction house conducting the sell can not start the Auction below 67% of value of the property.  Example if a house is forclosured on $350,000 but the value of the property  has a potential  of $800,000 to $900,000 depending on comps the the property would start the Auction sell not on what's delinquent but at 67% of value. Well I can say i question who and how accurate the appraisal  is because  they can not go in side the property, that would be trespassing.  Also to add, any leans that are on the property  take priority on that equity vs the owner. So the financial institutions get a better return  on there losses. Investors  like us have a smaller profit margin.  At these numbers it really  makes it hard to make a good profit  once this bill takes affect.  I have flipped  properties and when the tenet destroys the inside from having to replace sheetrock to fixing cement that was placed in the toilet to AC unit being taken, New HVAC being replaced, the list goes on. I feel this bill is very misleading and they should not place open price targets on the sell of the property.  It should be what it is now in which is the delinquent amount plus any additional  fees accumulated.   I strongly  encourage to share this information  and write an email and letter to as many state representatives and the governor to veto this bill or reverse  it.

AB 2424 (Schiavo)

lender does not benefit they only get what they are owed including all fee's etc.. benefit will be next in line and or the owner who lost it.. this will also cut down on the collusion that takes place at trustee sales.  And the reality is  with most of CA being uber competitive as long as there is no collusion at the auction most of these homes would bid up to 70% or so everything being equal.. But I get it takes away one who does really hard work tracks a sale that fell through the crack and the opening bid  is super low..