Court House Auction Question

2 Replies

How do I know if a deal if is a good for a online court auction. I am looking at some potential properties for South Florida. I know sometimes if you are not careful you can pay for something that is not first in line to foreclose. I know HOA Associatioans, Mortgage company Lender can become in line. I know IRS can be first and then Property taxes. How can I do my research on this particular property and how all this work.

Jordan,

You need to do your homework on the property and other lien holders who you could become liable too as you suspect. The county clerks office usually has this information online and/or in person. It varies for each location. When looking at these records you need to find out who else is owed money and how much when factoring your numbers on what you are willing to offer. This is what a title company does when you purchase a property but the cost to pay a bonded title company would get large fast if you tried to do that for each property you thought was a good deal. I would call the county clerks office in the location of the property and ask them how you can get this information. They are usually very nice in helping you get started. You also need to consider other things that won't be available at the county clerks office. Is the property occupied? What is the current shape the home is in (usually only an exterior inspection is allowed)? Utility bills owed? HOA payments and late fees? Etc... Books on the subject and a local REIA meeting to meet people who are versed in the local requirements and processes is also a huge help.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here