Due diligence when Buying at Auction?

[Travis Mullenix]

Hello all,

What due diligence should an investor complete before making a bid for auction sale? How would a person Research Liens on a property? 

Thanks!
Travis

[Derrick Lind]

You can get a title report (of different levels of completion) for about $180 from a couple of website like, US title records.  With the additional cost you might only do select properties. Another way is to look at PropertyRadar or others. Another method is to look at the property records on the county website. After you have done it a few times it gets easier although that has a cost too (your time). 

Look at the draft contract  it will say what kind of title they are obligated to provide.  Most REOs will provide a generally clean title.  If you win you will need to pursue and pay for title insurance.

Local PMs can be a good reference to help with a drive by or walk by.  Few auction provide buyer’s agent commissions too.