Advice on auction purchases

4 Replies

Good morning BP peeps,

I am looking for my first property after the first of the year. The market I am in is pretty heated so I want to look at all options for acquiring deals. Once option is auctions such as auction.com. My problem is auctions seem to have different rules for different states so it is difficult to find information. Can anyone point me in the right direction to acquire information on the auction process in Michigan and the best way to protect myself? 

@Casey Tyler
Auction.com has a phone number number on their website.

Try calling them.  They should be able to advise you on the process in your state

Hi Patrice,

I am more interested in things like:

  • How to make sure the property is free of liens. 
  • If a property is occupied, how do you get control of the property
  • How to read a title report
  • How to read a disclosure report
  • Should you buy title insurance.
  • At what point do you buy title insurance

These are only the things i know to ask. I am sure there us plenty I don't know. 

Sorry  I was not very clear.

Thank you so much for your reply!

First, use an experienced REO auction agent....their commission is built in...this is all simple stuff from them.
You can call auction.com, but verify.

The auction terms for that particular property will tell you if title insurance is offered. As long as it is, you’re okay.

You buy title insurance at the closing.

Buy your Own title insurance policy (pick your own closing title co.), don’t take their “free” title insurance....it’s not really free since their title co. adds a bunch of extra junk fees. More importantly, they don’t do a complete title search for unrecorded items, those will be not covered in the free title policy.

You can read the title report for your own education, but don’t rely on your own interpretation.

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