Buying condo at courthouse auction
12 Replies
Riz Ahmad
from New Berlin, Wisconsin
posted over 3 years ago
James Thomas Nakashian
from Massapequa, NY
replied over 3 years ago
Hi @Riz Ahmad , I just happen to go thru one of these. The hardest thing is getting the ability to see the condo that you are going to buy. Usually the condo association won't allow you in to see it. Basically i would try to find out as much as you possibly can about the property then go from there because there are plenty of questions to be asked. Is the rent controlled? are there common charges? how much are the liens, if there are any? You should be able to find out the lender on the condo so you can find out how much they owe otherwise you have to go to the auction and see where it goes from there. Because after you purchase the property you may assume the debt , the bank may waive it though.
Hope this was a start. Any questions contact me
-James
David Weintraub
Lender from Berkeley, CA
replied over 3 years ago
From a lending perspective a condo can get a loan if there are limited lawsuits. For example, a slip and fall suit will be covered, but if there was structural damage across all of them or like asbestos or something, they won’t.
You can probably only find out if you agree to purchase or maybe go speak to someone at the property. Or find out what realtor has sold one before and ask questions.
Also, HOA fees can carry over for months depending on state, and supersede liens.
Sometimes you can’t buy them in LLCs either, if that’s a concern.
Tom Gimer
from Washington, DC
replied over 3 years ago
Be very careful to understand the priority of liens in this sale... and whether you are buying subject to an existing first mortgage, etc. See https://docs.legis.wisconsin.gov/statutes/statutes...
Kyle J.
Rental Property Investor from Northern, CA
replied over 3 years ago
If you are buying this condo to rent it out, make sure you can. Many associations have rules about when/how a condo can be rented. Some completely prohibit it, others allow it but have conditions that limit it (i.e. can’t rent it out during first year of ownership), and others may only allow a certain percentage to be rentals and could have a long waiting list of owners wanting to turn theirs into a rental. So just make sure you understand the rules of this condo’s association before you buy. Even if you don’t intend to rent it out now, you might want to at some point.
Riz Ahmad
from New Berlin, Wisconsin
replied over 3 years ago
Thanks for all the info. Is there any good place where I can list of liens on the property and shag their priority is?
Tom Gimer
from Washington, DC
replied over 3 years ago
A search for "wisconsin title abstract" produces a bunch of options for companies that could do a title search for you. Good luck.
Wayne Brooks
Real Estate Professional from West Palm Beach, Florida
replied over 3 years ago
Spend a few hundred bucks, and sit down with a local RE attorney. You'll learn things to watch out for that you didn't know to ask about.
Jeffrey Russo
Investor from Thomaston, Connecticut
replied over 3 years ago
You can look up the liens in the land records, they're all recorded. You can also get a ton of info from the attorney that is handling the sale. I go there first to see if there is enough equity in the property to make it worth bidding on. Most importantly I would try to get financial info from the association and make sure they are well managed and ask about special assessments above the HOA fees. Many do not budget for capital expenditures.
Chad Nagel
Rental Property Investor from Fond Du Lac, WI
replied over 3 years ago
Originally posted by @Tom Gimer :
Be very careful to understand the priority of liens in this sale... and whether you are buying subject to an existing first mortgage, etc. See https://docs.legis.wisconsin.gov/statutes/statutes...
This⬆⬆⬆⬆
Chad Nagel
Rental Property Investor from Fond Du Lac, WI
replied over 3 years ago
Originally posted by @Jeffrey Russo :
You can look up the liens in the land records, they're all recorded. You can also get a ton of info from the attorney that is handling the sale. I go there first to see if there is enough equity in the property to make it worth bidding on. Most importantly I would try to get financial info from the association and make sure they are well managed and ask about special assessments above the HOA fees. Many do not budget for capital expenditures.
Have you done many deals in Wisco? Certain counties many have some info in reference to recorded mortgages online but first the op needs to know what he's looking at. 2ndly, please forward me the names of the attorneys that are handing out this info. Besides the legal notice and opening bid.
Chad Nagel
Rental Property Investor from Fond Du Lac, WI
replied over 3 years ago
Something to ponder when bidding sheriff sale deals
http://www.tampabay.com/news/business/realestate/florida-couple-stunned-to-learn-458000-paid-for-gulffront-condo-may-be-for/2329213
Brian Klean
from Elkhorn, Wisconsin
replied over 3 years ago
Have a reputable title company do a title search, if you need one PM also, I would absolutely get ahold of a RE Attorney, offer them a free meal and pick their brain, may take a few tries or some cash but that is invaluable.
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