- What is the Trustee's Sale and how do homes get there?
- --> Who can REALLY buy at the Trustee's Sale? <--
- How do you find out what homes are available to buy?
- How are they priced? How do you learn the value of the homes?
- How to pick the homes you really want to bid on?
- What is the bid process? What happens if I win a bid?
Who can REALLY BUY at the Trustee's Sale?
The simple answer is “anyone who meets the qualifications” can buy at the Trustee's Sale (auction). The “complicated” answer will appear in tomorrow's post. So what does it to take to qualify to buy at the auction? The answer is: MONEY – nothing more and nothing less. Plain and simple, isn’t it? And it doesn’t even matter where the money comes from (you, your relative, friend, or HARD MONEY LENDER). Here’s it how it works: you will be asked to show either cash or certified bank funds before the auction starts. The amount you need can vary so it’s best to call the trustee in advance so you are prepared. You will be asked to have a deposit ready that will be collected as soon as you win a bid. Most deposits can range anywhere from “$1,000 - $10,000 and even up to 10% of the winning price.”
Regardless of the deposit amount, you will be required to pay the balance of the price within 24-hours. They are serious. You may ask why the money must be paid so quickly? Isn’t it enough to be pre-qualified for a loan? The answer is: it took at least 6-months for the lender to get to the auction – they won't wait any longer. You must realize that the lender has lost money during the entire foreclosure process and is not willing to gamble that YOUR lender will come through at YOUR closing. Besides, there are enough “big players” with plenty of cash so that the “selling lenders” don’t need to wait for YOUR loan.
I'll finish this post tomorrow.
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