Everyone wants to buy a foreclosure until they get to see inside the property.

[Bruce Lynn]

Everyone wants to buy a foreclosure until they get to see inside the property.

Look at what this guy won at the tax foreclosure option.
https://www.13abc.com/2024/02/25/buyer-beware-local-man-buys...

It's not always pretty, profitable, and fast flipping like they show on TV and YouTube.

[Nate Marshall]

Quote from @Bruce Lynn:

Everyone wants to buy a foreclosure until they get to see inside the property.

Look at what this guy won at the tax foreclosure option.
https://www.13abc.com/2024/02/25/buyer-beware-local-man-buys...

It's not always pretty, profitable, and fast flipping like they show on TV and YouTube.

 A whole neighborhood awaits in Boulder. Let's not even mention that I bet there are investors who would buy as well as wholesalers who would assign contracts in Gaza right now. 

[Justin Brickman]

The forum title is a 10/10 

[Nate Marshall]

Yep. Says it all. 

[Jennifer Cook-DeRosa]

They saved him some money by helping rip out a lot of what was likely going out anyway, they hauled it away (granted, they dumped it on the neighbor, but it's still out of there) and they didn't even leave any personal posessions. I wonder if he'd sell it to me for $17,500?  :)

[Nate Marshall]

Yep. Needs like $10,000 in cosmetic repairs and curb appeal. And can you please remove the fire truck? 

[Andrew Syrios]

Quote from @Jay Hinrichs:

Quote from @Andrew Syrios:

Quote from @Jay Hinrichs:

Quote from @Andrew Syrios:

Yeah, I preferred buying REOs where I could actually inspect the property. But those basically don't exist anymore. You need to be very cautious with sheriff sales (not just the property's condition but also checking for tax liens and making sure you're buying a 1st and not a 2nd). 

I have seen folks that did not know basically what they were doing bid and buy seconds with no clue about the first..  And in one instance I tried to warn them.. And the bidder assumed I was trying to talk them out of it so I could buy it.. they ignored me and bought it.

I also bought a first in Vancouver WA .. And when doing inspection prior to auction someone was working on the house rehabbing it.. we bought the first showed up and the folks working on it had bought a second and had no clue on the first and did pretty much the full rehab out of pocket and now lost it all..  the money they bid on the second and the rehab and we got a basically fully rehabbed house for the price of the first..  Now granted this is rare to the extreme but if your the one losing out its painful.

I haven't actually seen that happen before but I've heard of it. I remember one case where someone was posting in the forums about how they accidentally bought a 2nd for $500,000 on a property worth something like $700,000 with a $700,000 first. (It was shortly after the 08 crash.) My heart sank for him. 

 I have seen it happen maybe 5 times over the years and directly involved in 2  .. the one I mentioned that I bought the first after the second was bought and another were I was bidding but got out bid B/C other bidder did not know about the first.

In the its a Small World category.. I was having lunch with the president of a new bank I am using in Oregon they are out of Eugene and they know your Dad well.. And then I was telling them about my funding's in the mid west and he mentions I think His boys moved back there somewhere.. I said Oh ya and perfect timing and hit it out of the Park !!!  

That's amazing. Talk about not doing your due diligence!

And yeah, small world for sure. That's really cool and I suspect my dad mentioned our operation out in KC to him. The funniest instance of that was when with a bank we were asking for a loan from in KC which was based out of Wichita. The president apparently knew my grandfather who lives in Wichita and recognized us because of our very unique last name. Now that really fit the small world category!

[Jack Saunders]

Quote from @John Underwood:

We bought a house last year that we did see inside of.

It was in a great area.

The house was full of junk and cat poop. It smelled like money and we got a fantastic price!

 I am not afraid of getting dirty myself and a crew.  When you go to the auctions will they tell you upfront on the listing if you can or cannot go in it prior to bidding?  I have interest in trying one out in the future.

[John Underwood]

Quote from @Jack Saunders:

Quote from @John Underwood:

We bought a house last year that we did see inside of.

It was in a great area.

The house was full of junk and cat poop. It smelled like money and we got a fantastic price!

 I am not afraid of getting dirty myself and a crew.  When you go to the auctions will they tell you upfront on the listing if you can or cannot go in it prior to bidding?  I have interest in trying one out in the future.

 The cat poop house we did see inside of and bought directly from owner for a song.

The auction houses you can't see inside of.

[Susan Maneck]

I buy foreclosures but never sight unseen. Most of the properties I bought were through HUD or Sallie Mae. In Mississippi you would not only have a problem with the house being trashed but foundation problems are endemic here and if the house sat for awhile with the bad roof you almost certainly have mold. HUD gives you a pretty good idea as to the condition of the houses they sell.

[Rich Hupper]

The other funny one is when a first time buyer comes to me with their fha loan and says they want to find a "deal". Lets look at foreclosures, and short sales....... smh

[Bruce Lynn]

Quote from @Jack Saunders:

Typically you do not get to go inside the houses before bidding.  Especially on the auctions on the courthouse steps.  Occasionally you can knock on the door and tenant will let you in, or maybe even the owner, but that is probably more rare.   If they're vacant I often go peak in the windows.

Some like Treasury auctions from IRS, DEA, federal agencies, they'll have open houses for a couple of days before the auction and sometimes the auction is held at or even inside the home.

[Susan Maneck]

Quote from @Rich Hupper:

The other funny one is when a first time buyer comes to me with their fha loan and says they want to find a "deal". Lets look at foreclosures, and short sales....... smh

Hey, that's why I like HUD homes. They tell you whether the house is in good enough shape for an FHA loan. I avoid the ones that aren't even if I plan to pay cash.

[Jay Hinrichs]

Quote from @Bruce Lynn:

Quote from @Jack Saunders:

Typically you do not get to go inside the houses before bidding.  Especially on the auctions on the courthouse steps.  Occasionally you can knock on the door and tenant will let you in, or maybe even the owner, but that is probably more rare.   If they're vacant I often go peak in the windows.

Some like Treasury auctions from IRS, DEA, federal agencies, they'll have open houses for a couple of days before the auction and sometimes the auction is held at or even inside the home.

I was in Honolulu last month and there was a foreclosure in the tower behind us and I went to check it out.. the Trustee service actually holds an open house.. No drinks or cookies :) but you can walk through talk to the agent etc.. very civilized .. this will create max bids at the sale no doubt when its that easy for buyers ..

[Kristine Ann]

I think it's great that this post is basically pinned to the top of the tax lien and foreclosure forum.  He's lucky there weren't mountains of rotting garbage to deal with.  The place actually looks nice and clean.  I'd rather no toilet than the opposite worse-case scenario.

People need to be informed of the risks.  A lot of the tax deed auction houses I see need to be demolished.  I occasionally will get one and restore it as a labor of love, but they are all in very rough shape. 

I wonder if he dealt with occupants differently, they wouldn't have destroyed the place?  

[Eric James]

Quote from @Jay Hinrichs:

Ones that can bite you though are higher end homes where the previous owner strips them

takes every cabinet every door every light fixture basically deconstructs the inside of the house

 They were just prepping the house to be painted, lol.

[Jack Schwartz]

Quote from @Kristine Ann:

I think it's great that this post is basically pinned to the top of the tax lien and foreclosure forum.  He's lucky there weren't mountains of rotting garbage to deal with.  The place actually looks nice and clean.  I'd rather no toilet than the opposite worse-case scenario.

People need to be informed of the risks.  A lot of the tax deed auction houses I see need to be demolished.  I occasionally will get one and restore it as a labor of love, but they are all in very rough shape. 

I wonder if he dealt with occupants differently, they wouldn't have destroyed the place.  

It’s challenging to understand how someone could allow their property to be sold at a tax deed auction. Consider a scenario where a person owns a house valued at, for instance, $100,000, and they owe the town $40,000. It’s unlikely that they would let go their property, allowing a debt of $50,000 to eliminate an asset worth $100,000. If they do decide to let it go, it usually indicates that something significant is happening. Perhaps the house isn’t even worth $50,000. So, as Kristine pointed out, it’s crucial that people are made aware of the risks involved. Many of the houses I’ve seen at tax deed auctions are in such a state that they need to be demolished. It’s a complex situation that requires careful consideration.

[Will Sifert]

Quote from @Jack Schwartz:

Quote from @Kristine Ann:

I think it's great that this post is basically pinned to the top of the tax lien and foreclosure forum.  He's lucky there weren't mountains of rotting garbage to deal with.  The place actually looks nice and clean.  I'd rather no toilet than the opposite worse-case scenario.

People need to be informed of the risks.  A lot of the tax deed auction houses I see need to be demolished.  I occasionally will get one and restore it as a labor of love, but they are all in very rough shape. 

I wonder if he dealt with occupants differently, they wouldn't have destroyed the place.  

It’s challenging to understand how someone could allow their property to be sold at a tax deed auction. Consider a scenario where a person owns a house valued at, for instance, $100,000, and they owe the town $40,000. It’s unlikely that they would let go their property, allowing a debt of $50,000 to eliminate an asset worth $100,000. If they do decide to let it go, it usually indicates that something significant is happening. Perhaps the house isn’t even worth $50,000. So, as Kristine pointed out, it’s crucial that people are made aware of the risks involved. Many of the houses I’ve seen at tax deed auctions are in such a state that they need to be demolished. It’s a complex situation that requires careful consideration.

There are many many reasons why someone lets their house go to tax sale. I share a list below. The most common reasons I come across are: the owner died, can't find heirs. The owners died, lots of heirs and no one wants to put up money for repairs, taxes etc when they only own a small %. They have a mortgage and are upside down so they walk away.  The house needs lots of repairs and has a lot of zone violations, might be up for demo, so they walk away.   I love when I find a property with a big mortgage, the home owner walks away voluntarily and I get the mortgage removed with my quiet title suit. 

 As far as the video. The only assumption I make is that the house will need to be gutted. I actually prefer if they were already gutted (less work and expensive for me).  Rarely are they in decent condition. Anything more than a gut job is a plus in my book, I assume the worst.  (I wont buy a tax lien unless the land value exceeds the cost of demo.) You have to be prepared for the worst, worst case scenario, the house has to be demolished. 

[Will Sifert]

Quote from @Kristine Ann:

I think it's great that this post is basically pinned to the top of the tax lien and foreclosure forum.  He's lucky there weren't mountains of rotting garbage to deal with.  The place actually looks nice and clean.  I'd rather no toilet than the opposite worse-case scenario.

People need to be informed of the risks.  A lot of the tax deed auction houses I see need to be demolished.  I occasionally will get one and restore it as a labor of love, but they are all in very rough shape. 

I wonder if he dealt with occupants differently, they wouldn't have destroyed the place?  

The last two tax lien houses that I got and sold had major plumbing issues. I had to deduct 5K off one sale and 9K off the other once the buyers did plumbing inspections... It's not always what you can see once you get inside, some of the what you can't see stuff can cost you a fortune and can be bad as well.

[Chris Seveney]

Quote from @Will Sifert:

Quote from @Kristine Ann:

I think it's great that this post is basically pinned to the top of the tax lien and foreclosure forum.  He's lucky there weren't mountains of rotting garbage to deal with.  The place actually looks nice and clean.  I'd rather no toilet than the opposite worse-case scenario.

People need to be informed of the risks.  A lot of the tax deed auction houses I see need to be demolished.  I occasionally will get one and restore it as a labor of love, but they are all in very rough shape. 

I wonder if he dealt with occupants differently, they wouldn't have destroyed the place?  

The last two tax lien houses that I got and sold had major plumbing issues. I had to deduct 5K off one sale and 9K off the other once the buyers did plumbing inspections... It's not always what you can see once you get inside, some of the what you can't see stuff can cost you a fortune and can be bad as well.

 Here is a good example of what you will get on the inside - this is after a cleanout.

206 Helena St, Charleston, MO 63834 | MLS #24009344 | Zillow

[Jamie Bateman]

Here is another good example ($10k+ trashout): 

[Jamie Bateman]

[Jamie Bateman]

Quote from @Jamie Bateman:

Here is another good example ($10k+ trashout): 

I guess they don't like me linking to Youtube here. Google "Be the Bank broadcast" with Justin Bogard.