Hey want to hear some quick feedback from those of you that participate in sheriff sales or have in the past. Questions as far as:
how to bid
how soon the you have to provide the money
also how is the pricing are most of the homes starting way too high?
Any information would be greatly appreciated.
Haven't bid on any yet. Time to pay is usually a deposit and proof of funds letter at time of sale. And it's up to you to research about any liens on the title
I attended one sherriff sale in my county. It was a good experience as a new investor so my advice is just go and check it out as they are open to the public. Some info pertaining to my county:
The bidding starts based on upset price or the value owed to the bank. The bidding was in increments of $100 however I did notice some bidders make large jumps in their offers like $1000+.
The winner of the bid was required to have a cashiers check of 10% of the purchase price immediately.
The majority of the time the bank who filed the foreclosure was there to just buy back the property for $1. And when there was a bidding war between the bank and an investor, the investor didn't have a chance.
A lot of the properties were priced pretty high because they were under water. I did follow one of the properties which had an upset price of $80k and the bank bought it back for $1. A few months later the property was listed as an REO for $60k. So I guess even if a house is for sell at a sherriff auction it still might not be the best price.
All of the information you want to can be answered at the clerk of court's office, at least they were in my county. But other than that, @Cory Land hit the nail on the head.
The answers given above may not apply to your location, since the way these auctions work is very location specific. So somebody from Indiana might be the one to listen to. Further reading:
Some counties around Indianapolis require certified funds paid before the auction starts [Marion County] and others you must pay immediately after the sale is over [Johnson County].
Marion county requires all bids to be submitted before 3 p.m. the day of the sale. Bidding is open at 8 a.m. the day of and the auction starts at 3:15 the same day.
Johnson county one can just bid on the spot as they go through the list like a traditional auction.
Most have the property list online a few weeks before the sale date as well.
I hope that helps.
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