I came upon a house that looked pretty pleasing to me.
It’s going to sheriff sale in a month. They owe 206K and 12k in back taxes(not sure whos foreclosuring, mortgage company or county.Auction starts at 153K
As a RE agent, i went ahead and searched previously sold homes on the street and they average out to 260-280K
Mind you the home is in a very desirable neighboorhood and it sits far back in the woods on 2 acres. (I live in Ohio)
The house is currently up FSBO, so this is my only chance to get inside and see the condition and walk the outside as well. The house seems solid since it was built in 1989 and is alittle over 2000 sqft.
My question to you all is, do I try and talk the homeowner to work a short sale, or risk it and go for the sheriff sale?? I know for a fact the Banks attorney will be at the auction, but would I have to pay the back taxes if I win the auction or do they disappear?? I have a feeling im paying the back taxes.
First thing taxes never go away unless you pay them. As for the foreclosure if you can get the owner to sign a release of information form and a contract, you should try the short sale. The bank will bid what is own on the mortgage. Better make sure you know every thing you can about the condition of the house if you do a short sale or you may be in deep trouble, even with a short sale.
As a newbie investor, I get very cautous when it comes to foreclosures and short sales. I see soo many people buying through a foreclosure sale, and im sure some get lucky with a well built house and minor fixes and some get a dump.
I know through a forclosure sale though, you don’t have any contingencies, ie, inspection, finance.
As for the owner, it is a FSBO, and the street doesn’t have heavy traffic, and the FSBO yard sign blew over from wind, and they haven’t bothered to put it back up( I know cause i drive by the house atleas 3 times a weeks) this seems to me like they dont care, but i dont know!
I’ve never tried a short sale either, so I don’t want to try something i’m not 100% sure on. But is also how you learn, by trial and error. So i guess my first thing is to get in the house and try to talk to the owner to sign a release!