Your Questions Answered
At Ashlar, I firmly b that an educated home buyer or seller is best equipped to make their own decisions. That’s why I take time out of my day each and every day to answer someone’s real estate question. And, when I think the answer can be useful to you as well, I share it here. So without further ado:
1. You have to have pay cash, in full within 3 days in most counties. And a sizeable cash deposit same day usually.
2. There just aren’t many foreclosure sales, because they can usually sell at retail and the seller put some money in their pocket. So the only ones going to auction are very problematic properties usually.
3. Just because you win the auction does not mean they give you clear title. This is not a car. A deed or certificate of title is not necessarily clear title. So you hand that cash over, and then whoops… the original owner still has a $200,000 mortgage that has to be paid off. How’s the ROI now?
There are a TON of pitfalls in auctions for the uninformed. I have 2 clients right now that have gotten in way over there head (see #3 there) and have spent 2 years trying to find a way out from under it…. all the while still having to pay taxes, hoa dues, etc