who has experience buying REO's from auction.com. The good the bad the ugly?? I'm looking at one in my area with an opening bid of $5000. I've reviewed all the county documents, liens, etc. this appears to be the 1st position foreclosing. They state all taxes are paid up. This is my first on auction.com. Question, am I bidding on buying the property at high bid is it, or is the a bid to assume the mortgage that is $70k? Also, once it's an REO it has to be clear title right? Do they offer title insurance? Any info would be great. Thanks
Typically an REO is a property that the bank has already foreclosed on and they now own the property.
I have bid on some REO properties on Auction.com and they provided a title report showing that the bank owned it and had no liens. I did call the title company on one to make sure because there was some issues about the title report.
I would make double dog sure you know what you are bidding on before hand. Call the title company up and find out who owns it and what the situation is. Educate yourself about this before bidding!!
I just had an auction.com property close yesterday. I'm on the other end of it as a REO listing agent for the lender. Typically, the title is clear. The bank has already foreclosed. The highest bid wins, you can typically purchase title insurance as part of the closing. Everything is electronic, automated, and smooth.
If the property is occupied, be prepared. The bank has already offered cash for keys and the occupants have been living there without paying anything for years. Typically, those homes need significant repairs and that is why the bank offered the property for sale in an auction.
The bids jump in price within the last 5 minutes before the auction is over for hot properties.
If you have the availability always inspect property before you bid. Know what your buying.