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January Johnson
  • Real Estate Agent
  • Emerald Coast, FL
486
Votes |
820
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Seeking advice on how much to bid for a foreclosure in FL

January Johnson
  • Real Estate Agent
  • Emerald Coast, FL
Posted

Hello BP community - I am newly interested in buying foreclosure properties via online auction, and I would like some advice on how much to bid.  The auction I am inquiring about will take place on 9/23, this Friday.  

Here is what I know about the house and what I have done so far:

The 2015 assessed value for the property is approximately $105,000.  The final judgement amount is approximately $25,000.  I happen to know the person who owns this house (small town), but I am not in contact with him at all and only found out it was his house through county records.  Also, I know he  inherited the house from his mother in 2012 and likely took out a loan against the house for other business as he did not need a mortgage to obtain the property originally.

I have ordered an O&E report from the title company already (good advice from another thread here on BP) so I can find out what liens and other judgements may exist.

My question is, what can I expect in the bidding process?  Would competitors bid as high as (or very close to) the AV?  Would no one bid more than the final judgement amount?  I have no idea what to expect on the bidding process and would like some guidance.  I don't know what the house looks like inside, but the outside is in good shape, the house was built in 1985, and it is in a desirable location for renting, which would be my goal.

I have an account open with the county's online auction site and will put the 5% deposit money in ASAP.  I need to move money around from other accounts in order to have the balance due available within the auction's time frame, but I do not anticipate that this will be a problem.

I know nothing is certain in transactions like this, but am I crazy to think I could get this house for the $25,000 final judgement amount or something close to it?

Thank you for your time to advice a newbie!

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