Rental Property Investor | Realtor · Jacksonville FL | Savannah Ga |Raleigh NC · Member since 2017 · 467 posts · 161 votes
would you say from your experience with online auctions, and educating me as newbie to auctions, would this make sense:
Q. is it safe to participate in Auction.com Bank owned properties with hard money because there is a longer period of time to close. (hard money lenders need at least 5 days).
As opposed to Auction.com forclosures which default to county website, and Fl county website needs full funding by like 12noon the next day..
(impossible for hard money)
Q.(one other question, is it safe to say bank owned must provide clear title for closing, as opposed to county websites forclosures where they are not title ready and need title search before participating
I am new as well but will share what knowledge I have acquired thus far. First off, Auction.com has a well laid out and and easy to understand faq section under the help link that is very comprehensive as to information on the entire process. If it is an online auction, ernest money is due within 2 business days. But there are 5 days to show proof of funds. There was a hard money lender advertised on their site, so I gave them a call. They seemed confident that if you were involved in the approval process with them the seller would generally accept this as proof of funds. I went to the Bigger Pockets Hard Money search link and called my way down the list. All the lenders on the first two pages in my area, and garnered additional confirming responses. However the seller has right of refusal and will ultimately decide wether the proof of funds is acceptable. If the auction is on the courthouse steps, it is not REO. That is the foreclosure auction. And you need to have your bag of cash in hand. Also find out about your states rights of redemption before you bid on these.
On to question 2. There is no guarantee that the title will be free of liens. It is very much advised from everyone I have talked to to at least get a preliminary. You could also go to the county recorder and do your own search. This is where the title company will get their information. The people at the office I went to helped me learn to search all their various record types in about 15 minutes. The actual search took a bit longer.
As I say, I am new as well, but I hope this helps some.