CLERMONT, FL · Member since 2015 · 16 posts · 0 votes
I am just curious to know if anyone has ever lost over 100k, by bidding on a property with multiple problems that you didn't know existed. For example, liens from the HOA, local municipality, claims from uncle Sam, cousin Harry, ex spouse, 2nd mortgage and uncle Bob etc etc etc. You obviously thought you were getting a bargain but inherited the problems, that became your responsibility.
Can you please share your experience, how it happened , and what did you go to mitigate the circumstance. Does any body have any advise to share in order, to avoid a huge financial mistake, when using the online auctions. Thanks in advance.
Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes
11y
@Account Closed
Haven't lost even close to that amount, but have had unexpected surprises such as violations that existed from another department other than Property/Bylaw that didn't show up in ANY searches. Have had a former owner "squat" in the property for over 3 months and completely strip and destroy the place before he was evicted. Also been scammed by lawyers representing HOA's who tack on exorbitant fees on top of the judgement amount.
Everything in this business is negotiable, never settle for the first number thrown at you. And ensure you do a proper title search before you bid!
Investor · Des Moines, IA · Member since 2015 · 380 posts · 201 votes
11y
What do you mean by online foreclosure auction? This can mean a variety of things. Most REO online auctions provide a warranty deed, therefore there wouldn't be any issues really. There are sheriff sale risks, but those aren't online.