Real Estate Q&A
Your question a couple weeks ago, having to do with the foreclosure process, was very helpful and I have been pondering the idea of purchasing foreclosure properties ever since, but it has raised a few more questions. How or where does someone find out what properties are being offered at the public sale each week and the minimum price the lien holder will accept? Where does the sale occur? Can I inspect the property beforehand or have it inspected by a professional inspector? How much notice is given before the sale to allow for the inspections to be done? At the public sale, does the buyer have to actually come with cash in hand and if not, how does that person prove that he has “good funds” to complete the transaction? I look forward to your answer. Thanks — David
Happy to hear the question and answer were thought-provoking and I will do my best to answer your new questions, but you have officially used up your allotment of questions for this column! It really is easy to find out what is happening in the foreclosure world on a week-to-week basis. You can go to http://www.mesacounty.us/publictrustee/ and find a ton of information including what properties will be going up for sale this week, which ones have sold in recent weeks, what properties are on the pending foreclosure list and Mesa County foreclosure statistics. This is a very informative website and the Public Trustee’s office really does a great job of keeping it up to date, so it is very useful. When you go to the website and click the link for “list of foreclosure properties up for sale this week” you will be linked to a spreadsheet that shows the address of the property, lender etc., but you will also see what the loan amount is due to the lien holder AND the minimum amount the lien holder will accept. The lien holder updates the minimum bid amount to the Public Trustee’s office on Mondays and the Public Trustee’s website is updated to reflect those amounts every Monday by 4 pm.
The public sales occur every Wednesday at 10 a.m. at 544 Rood Ave, Floor 3A, Training Room B. Properties only go up for sale one time only and the party that has the winning bid amount must pay by 1 p.m. on the same day with certified funds. The preferable payment method for the Public Trustee’s office is a cashier’s check, which you have time to go get one right after the sale is complete. You are not required to provide proof of funds prior to making a bid, but you must have the funds immediately available to pay for the property by 1 p.m. the same day. Going and getting a loan will not work!
You can access the list of properties that will be sold each week via the website, but you will be purchasing “as is.” Typically you do not gain access to the property prior to bidding nor do you have time to perform an inspection. You can drive by, look in windows, walk the property etc., but typically you can not gain access to the property. It’s like any gift, some are great and some, not so much. It can be a very risky proposition to purchase foreclosed homes at public auction, because you never know just how bad or how good the condition really is till you get inside and generally you are not inside until you already own it. If you talk to investors who have purchased homes at public sale, they will all tell you some are great and some are awful. Proceed with caution.
If you have any further questions you can contact the Public Trustee’s office directly at (970) 254-4180. They are very helpful and will be happy to answer any further questions in detail. All good questions, your opportunity awaits!
The Kimbrough Team, RE/MAX 4000, Inc