real estate auctions

[forgotten_aria]

Does anyone know anything about real estate auctions? Are they good places to get deals. It seems like a really scary concept to me, especially since you have to get the home inspected BEFORE bidding, which costs money.

Comments

[honeyartichoke.livejournal.com]

I find the auctions scary - you have to make the decision very fast with less information. Also with foreclosures, the bank often requires you to sign away any rights to back out of the transaction and make a commitment to buy regardless of later issues with the house or title. This is even more scary considering that people sometimes sabotage the property that was taken from them, or at the least the house might have been unoccupied and not maintained for a time - which can be worrisome with our winter climate.

[binkbink.livejournal.com]

I forgot that. Yes, a lot of the repos have been trashed by the departing homeowners. It is sad that the attitude exists, but yes, it is a very real caveat for an auction house.
In addition, some who have bought auction houses intending to live in them (rather than flip them), have been harassed by the dispossessed previous owners, so to the point of being in fear for their lives.
Even though I am considering it myself (only a little), I recommend against looking at auction houses, despite their apparent bargains.

[sauergeek.livejournal.com]

Another potential (but rare) gotcha for foreclosure sales is that the previous owner has time -- I believe it's a year in Massachusetts -- to pay off the bank and reclaim the house. This can happen even if there's a buyer resident.