Buying a property at Foreclosure Auction
A. Find a property you like
1) Look through Durango Herald public notices, published every Thursday.www.durangoherald.com
2) Websites like foreclosure.com , zillow.com, trulia.com, often not up to date or accurate, but some have pictures
3) Best and most up to date info at the Durango Public Trustee's website: http://co.laplata.co.us/foreclosure
B. Research, Research, Research
1) Buying a foreclosure is risky business, doing proper due diligence on the properties is virtually impossible, no guarantees
2) Do title search, liens, notices, omitted parties, get title company involved or go to map room in clerk and recorders office in Courthouse on 2nd Ave
3) Drive by, try to get in, ask around
5) Research value of property, decide how much to offer, for value check with Realtor, look on MLS, get your favorite realtor to pull a CMA, try www.zillow.com, don’t trust these value though.
6) Assemble a team of Experts, get help! Attorney, title company, banker, financial and tax adviser, insurance agent, contractor, handyman, Realtor, and yourself
C. Get Cash and go to Auction
1) Recheck the banks initial bid
2) Have a cashier's check for the entire amount
3) Go to auction, Wed at 10am and bid.
D. After Purchase
1) Secure property, locks, winterize etc
2) Get legal advice, title work etc.
3) Wait out redemption periods, hope everything goes smoothly, get legal advice.
4) Get confirmation deed.
5) Start cleaning up, fixing up, move in, rent out, put up for sale.
Disclaimer: I, Claudia Williams, am a licensed real estate agent. All information presented here is based on my personal experience and there are no promises or guarantees to its accuracy. Buying real estate, especially foreclosures, is inherently risky. I recommend consulting a real estate attorney and tax accountant. Do all your due diligence!
I hope you enjoyed this bit of advice. Remember, this is all my personal experience, every deal is different. Be careful!
Confused? Overwhelmed? I can help you with this, with the research and with the decision making. I’m sitting here at the pulse, I know the good deals when I see them.
Since some property sales, such as buying at foreclosure auction, don’t pay us realtors a commission, however, it will be hard for you to get help from a realtor without some sort of reward for your realtor. There are several ways, for example you can hire me as a buyer’s agent and pay a commission on every purchase, or you can pay me hourly or you can do multiple purchases with me and I’ll help you for free on those that don’t pay if I know I’ll make a commission on another property, say when you flip and sell this one. Let’s meet and we can discuss it all.
Good luck investing!