Bought a house at forclosure auction in Louisville KY, now what?

15 Replies

hello, just bought a duplex in Louisville KY it was a commisioners forclosure, now what do i do?

@Mark Abbott if this is like the process here in Pittsburgh and its similar to whats called the "Sheriffs Sale" then you will need to wait for the deed to be recorded. Also make sure there are no clouds on the title etc.. if you are not familiar with the process then find yourself a good RE attorney who knows the process.  and can walk you through it. If you have already done that or know you have a good title then I guess the next step is to get the property sold as is or fix and flip or fix it, rent it out and hold it long term. 

I am interested to hear your experience with buying a property on an auction site.   Those always look like great deals, but people keep telling me it’s not always that great of an opportunity 

Contact Hunt Rounsavall or Harry Borders to get title search started and start figuring out who you need as contractors and what’s needed to get the property going. Congrats!

this is a cute thread..   I mean how many people buy at foreclosure sale or commissioners sale or sherrifs sale then have no clue what to do.. would think a little due diligence up front..

but any way welcome to the club I find those deals most exciting .

I love buying at the auction. Unfortunately there are quite a few that love it also. It is very competitive and you really have to know your numbers and budget. With that you can hopefully get a great buy. I have seen newcomers buy too close to the top and know they did not do their due diligence. Prepare well before you go.

Don't forget to get insurance on the property asap. And like everyone else has said, get a title search done. I think you have 10 days from the date of purchase to have that done. Good luck!

Thanks everyone for the well wishes and yes i did run the numbers and believe i got a good deal on a duplex.  There were about 200 people there but Louisville usually has 50 to 80 houses in forclosures every 2 weeks you can get on the website www.jeffcomm.com for the dates, they do an appraisal usually a week before the auction and there is also a handbill that shows what is owed to the lender.

I usually mark the ones im interested in, and yes I work it on a budget, then I go and view the properties and make my own assessments then i run the numbers and sometimes you can get a good deal.  This was my third auction and i felt really good about a few properties so i pulled the trigger and got one I was asking questions, some i knew or had an idea of the answer, to get some opinions from people on here who have been doing this stuff longer than i have as I have no mentor.

Hi Mark. We are almost neighbors since I am in Galena. As the others have said, get the title search done. 

Is the property empty or are there current tenants? If it is empty my suggestion is to start making your rehab list and arrange it in the order that makes the best since for a smooth process. If you would like to get together and talk things over I would be happy to give you benefits of my experiences. Just let me know.

David

One is empty and the other is rented

Originally posted by @Mark Abbott :

Thanks everyone for the well wishes and yes i did run the numbers and believe i got a good deal on a duplex.  There were about 200 people there but Louisville usually has 50 to 80 houses in forclosures every 2 weeks you can get on the website www.jeffcomm.com for the dates, they do an appraisal usually a week before the auction and there is also a handbill that shows what is owed to the lender.

I usually mark the ones im interested in, and yes I work it on a budget, then I go and view the properties and make my own assessments then i run the numbers and sometimes you can get a good deal.  This was my third auction and i felt really good about a few properties so i pulled the trigger and got one I was asking questions, some i knew or had an idea of the answer, to get some opinions from people on here who have been doing this stuff longer than i have as I have no mentor.

 other than those that do this for a living I think you have a good handle on this.. not that complicated and your UBER lucky to be bidding in that environment were the heavy lifting is done for you up front.. many jurisdictions are MUCH MUCH tougher and riskier..  IE cash on the barrel head make a boo boo and lose 100k.. LOL.

Don't forget about the previous owners right of redemption!

Paid over 2/3rds the appraisal value so should be ok

So update, the duplex has been finished for a month and both units are rented out.  The sfh is being remodeled now and hopefully done before winter.

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