Tax Sale Property (Los Angeles, Ione: foreclosures, loan, houses)

[bdesmit]

Hello,

I've recently heard of these tax sale auctions which cities hold to get tax defaulted property back into the market. It seems like a great chance to acquire some sort of property at an affordable price for someone like myself who cannot just go out and buy a $1,000,000+ piece of land in Los Angeles. I realize that there may be many risks involved which I am not yet aware of. I'm posting this thread to get any feedback and/or resources from persons who have experience in these auctions.

Thanks. I look forward to any replies.

Brock

[ferretkona]

If you can find these properties the auction does not give a clear title. As the new owner you will have to pay any other liens occured by the PO before they lost it.

They say that foreclosures are at a high right now.

[Oliverlaw]

Sir:
Where does the existing loan go? Will it be wipen out or the Higest bidder assume (subject to) the loan?

[greggd]

Originally Posted by bdesmit

Hello,

I've recently heard of these tax sale auctions which cities hold to get tax defaulted property back into the market. It seems like a great chance to acquire some sort of property at an affordable price for someone like myself who cannot just go out and buy a $1,000,000+ piece of land in Los Angeles. I realize that there may be many risks involved which I am not yet aware of. I'm posting this thread to get any feedback and/or resources from persons who have experience in these auctions.

Thanks. I look forward to any replies.

Brock

Friend of mine told me about a month ago that he and another contractor went to an auction in long beach looking to buy, fix up and sell. They did their homework, inspected the available houses, and calculated their costs. Both have 30+ years in contracting - restoration. They found 2 places that they were interested in and figured the max they could pay was about $550,000 based on repairs & values in the area.

On the day of the auction he said "everyone and their brother showed up". Some guy promptly bid $700,000 and bought up both locations they wanted.

I've heard from several sources, there is alot of people looking into this and the deals are not that great. Once in awhile you can find something. some people have an in to get a call before it goes up.

Maybe next year or 2009 will be a different story. If surplus continues to increase the banks may want to unload at bargin prices.

[Sorcerer68]

Be warned: Right of Redemption states that the buyer may have up to 1 year to redeem the property. If you buy one of these properties, don't do a thing to it for a year.

[OneObserver]

I have been to many auctions by now, and not once I ended-up buying a property/ item!
Properties/items of "true value" always get over-bid by someone that does either not understand fully what he/she is bidding on, or it has turned into an ego bidding ware.
That said there is one winner - THE AUCTIONEER -
Remember, you enter a venue where you are made to believe that you can acquire something of great value for little money,
multiplay that by as many participants plus through in the feeding frenzy factor and you end up with a perfect cluster ****,
aka over-bid!
Most "bidding-winners" end up raiding their cash cow and a buyers remorse hangover!
Happy Bidding

[OneObserver]

I have been to many auctions by now, and not once I ended-up buying a property/ item!
Properties/items of "true value" always get over-bid by someone that does either not understand fully what he/she is bidding on, or it has turned into an ego bidding ware.
That said there is one winner - THE AUCTIONEER -
Remember, you enter a venue where you are made to believe that you can acquire something of great value for little money,
multiplay that by as many participants plus through in the feeding frenzy factor and you end up with a perfect cluster ****,
aka over-bid!
Most "bidding-winners" end up raiding their cash cow and a buyers remorse hangover!
Happy Bidding

[ferretkona]

Probably the largest winners are the advertisers for these events.