Hey Sac BP community. Does anyone have experience attending the Sacramento Foreclosure Auction? Looks like its held at the courthouse on 720 9th St. I recently went to the tax deed auction but have not been to the foreclosure auction. Anyone have any insight, resources or experiences to share?
They should have these regularly at all counties. You can come and experience it yourself.
In my experience, most of the attendees are not very friendly (they don't want competitors). Some house can be cheap, but the competition has been heating up quite a bit, as there are less house, and more buyers. You will need to pay cash (cashier checks) right after you win the auction.
It takes team of several people. One brings $100K, $50K, 10K, $5K cashier cheques making bid. Another research for tax, income tax, hoa liens same time, and third already inspected and assigned a value looking outside. Since inside condition is unknown you need to make assumptions of repair cost. Most homes you are interested are not available that day. They were withdrawn. When a rookie makes a bid people are laughing they know he got a lemon or overbid.
I have been in an auction here in San Jose, like @sam shueh said 3 of 5 properties were withdrawn. unfortunately I wasnt able to experience the actual bidding because the other 2 property wasnt ready to go auction before i had to leave
Good advice all but like @Albert Ng said I will just have to go experience it for myself. After all the best way to learn!
You can find collusion at those auctions. Locals work with each other to get homes. Some have paid others not to bid. How much of that stills happens ... unknown. Yet it was a big deal in Alameda County and yes people have gone to jail. A new neighbor took over a year to get a tenant out of a home he acquired in an estate sale.
I buy before they get auctioned off. Once at the auction theres no margin.