Buyers Beware! Real Estate Auctions- Did You Read the Fine Print???
Do you know what you are really buying? Do you know what foreclosure you are buying and from whom?
There is a growing problem here in Florida of buyers buying foreclosures at auctions that are HOA foreclosures. After they buy the property the new buyer gets foreclosed on by the mortgage lender.
The biggest reason this is going on is because Palm Beach county, Broward county and other Florida counties have moved all their foreclosure auctions from the courthouse to the internet and opened the bidding up to people all over the world.
When people get excited about buying a home so cheap most of the time they don’t have an agent to guide them. Perhaps they read a book about buying real estate on the cheap or watched late night tv paid programming about buying real estate at basement prices or with other people’s money.
They also rarely know what they are bidding on because they fail to read the fine print, they fail to do their due diligence before making an offer to purchase in the auction. They are not doing title searches on the properties they are bidding on.
Novice investors BEWARE! You will get burned.
If it sounds TOO good to be true- it most likely is!
If you really could get a million dollar property for $30,000 everyone would own one!!!! When you see a million dollar property at an auction for $ 20,000 to $30,000 that is not all that there is to deal with to own that property! When you see this, it is most likely an HOA foreclosure! The HOA forecloses here in Florida for non-payment of HOA fees. But that does not wipe out the mortgage on the property or two mortgages or three! You have to clear all those lienholders!
Unless you have a lot of real estate investing experience DON’T BID ONLINE!!!