Does anyone have any resources they can recommend for learning more about the auction.com process. I called and spoke to one of their customer service reps and there were some questions I guess they couldnt answer fully. I guess I am looking for someone with experience with the auction process to help me fill in the blanks.
For example, will they take a hard money lender when they say "cash only" . Are they really looking for cash only or a quick close? What is the time frame to pay? Is that going to be different on every house?
Would you have to go through the eviction process if the previous owner wont move out? If you win the bid, and the bid comes in lower than the debt on the property, are you responsible for the remainder of that previous loan? And finally, what is a broker coop? How does that work?
It would be awesome if someone could at least answer some of these questions. I know this is going to be one of those things you just have to do in order to learn all the details, but it wouldnt hurt for me to try to pull back the curtain at least a little before I dive in!
@Phillip Vaughan I've purchased 2 homes recently from auction.com and looking at #3. There are many more experienced people on this site who may jump in, but here's my experience (and a few answers to your questions).
They consider a hard money lender same as cash, so if you have one lined up you are good there. You typically have 30 days to close after an accepted bid.
Use your own title company to provide title insurance and to actually hold the closing. You have that option on most properties. Tell them upfront you have your own title company. The title should be clean (verified by your title company) and you wouldn't be responsible for the previous loan.
I look only at "bank owned/newly foreclosed" properties, and stay away from the broker co-op or buyer premium listings. That's an added out-of-pocket expense that most of the homes I look at don't have.
Most will list as occupied, however in my experience the previous owner is gone by the time it's listed on auction.com and there is an accepted bid. I buy out of state (TX) and have a realtor and contractor on the ground who go by and view the homes. So far, they have all been vacant with lock box on the front door even though they were listed as occupied. Again, could be because I am only looking only at "bank owned/newly foreclosed" where bank has already taken possession.
There are deals to be had, you just have to be patient and have a HML in the wings ready to go...
@Bret Faszholz comments are spot on.
Thanks for the clarifications. Do you have the title checked before the auction or after you win the bid? If you have it checked after, how long do you have to check on it before you can bug out of the deal? And if something does come up on the title that causes you to walk away, do you get your deposit back?