Auction for new investor

[Lia Locarnini]

I am a new investor interested in purchasing at an auction.  I will have all cash to buy the property and am planning to buy,rent, and hold the property so that it can appreciate. I plan to run comparables, drive by the property during the day and during the night, research the neighborhood, and have a title company provide my a title report to determine if there are any liens on property or 2nd mortgages. If the title report looks clean with only one mortgage, should I still be concerned about liens or mortgages not showing up on the title report?  Although I would like to get a good deal at an auction, I don't want to do something foolish. I know there are also risks of squatters, tenants not leaving property, and costly repairs. I guess my question is, do you think that the potential savings offered by foreclosure auctions are worth the risks for someone like me who is a new investor (but one willing to put in the time and effort to thoroughly research)? 

[Wayne Brooks]

@Lia Locarnini Typically, you don’t care if there are multiple mortgages or liens on a property......as long as it is the First mtg that is foreclosing, the other junior liens get wiped out.  There are exceptions to this...hoa debts in most states, some county/city/state liens.  What you need to look for in some cases are “unrecorded liens”....code violations, utility bills, etc.

Each state has different laws, so you need to identify your area to get specific help.