Yesterday I made a registration to bid on foreclosures (auction) in Florida. I was a little bit confused because I am a beginner and I was afraid I was bidding in a wrong manner.
My property had a plaintiff maximum bid of 9.000 and a final judgement of 9.000 (HOA) I was goint to pay the 9.000 however I did not make any title search and in the end I did not bid on anything due to my lack of experience. Once you bid the 9.000 you also have to pay the 9.000 due for HOA right ? I assume the plaintiff was the HOA as they were the ones foreclosing. I checked the property taxes and the property didn’t own anythind according to the county website. Can they have any other liens on this property once I buy it ? I know there is a lien order.
Can anyone please help clarify how this process works ? And what happens after I buy it ?
A Letter Report is a short and faster way to run title on properties that you have an interest in, like auction properties.
Your title company can do that.
That will show any liens on the property.
Your best option to get familiar with title, is talking to your title company. Ask them which liens are dischargeable, which ones aren’t and the lien order.
I really don’t feel comfortable making statements on liens, although I have purchased dozens of properties at auctions and foreclosures, that is why I suggest you talk to a title company and use some of the Letter Reports on possible deals that they run for you as a learning tool.
Tony
You really do need to do your research before attending auctions. This also pertains to any real estate investment you want to make.
You can use a title company, but you can also research the properties yourself by finding where your State files public records and and then you can follow the mortgage trail.
You also need to know the current value of the property that you are interested in so that you do not get caught up in the auction process and over pay for the property.
I agree, you really need to do an intensive research before bidding in auction. You should realize that there are risks involved in buying at auctions. There are even penalties for backing out of a winning bid.