I live in Los Angeles and I have a real estate agent in Denver, CO who's bidding on foreclosed properties for me. My bids are at most $60K. I have him look if there are any liens on the properties that I bid on. He says if I win a bid it's as simple as me wiring my money to the escrow company. This all sounds very simple and, thus, makes me wary. Is there any advice YOU can give me that I'm blind too. I'd like to avoid any pitfalls. Thanks in Advance!
My question is where in the heck are you finding anything in Denver for under $60k?!!!
My knowledge of foreclosures in Denver is limited to attending one auction and not buying anything, but one thing I can tell you is that if there's a property you're interested in you should check with Denver water to see if there are water or sewer charges, which go with the property not the owner but (as far as I know) don't become a lien. You can contact them at 303-893-2444 or [email protected]
Where exactly is he bidding on these? What title company is he using?
I don't know where you're bidding on these deals, but if you're buying them from the Denver county public trustee you're expected to hand over cash at the sale. No wiring money to an escrow company. Cashier's checks on the spot. You bring a stack of checks with you in various amounts and get as close to the bid as you can, if you win.
There are no $60K properties here. None. If you're buying from the public trustee and buying something for $60K you're buying a second position (or lower) lien.
All foreclosures are handled by the public trustee.
If you're serious about buying from the trustee, run a title search before bidding. Lists of properties to be auctioned are published on Tuesday afternoon. The sale starts at 10:00 AM on Thursday. So you have to find a title company who can do it quickly.
@Mosun Mah I agree with the others. Be sure that your agent is licensed with the state. You can check that out online at DORA . I have a hard time believing an licensed agent would do what you are describing for a client. There are so many ways they could lose their license even if everything was done in good faith.
Thank you Tracy, Jon and Bill for the information and your suggestions! I'll be looking into it! Cheers!
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing