Thinking about buying at the courthouse and picking up a great deal?

Seems to good to be true?

Avoid costly mistakes by following a few simple guidelines:

Realize you are buying at your own risk
Be aware that a title search is only good for approximately 14 days prior to the time you are buying. This is only information, not insurance.
Realize that there are rarely any "great deals" at the courthouse. A property worth $120,000 in foreclosure will not be sold for an asking price of $6,000. If it is too good to be true, it probably is.
Verify who is foreclosing on their lien. Is it the lender, the homeowner association or some other party?
Order a title search of the properties you are interested in bidding on before you bid. Order title search here
Verify mortgages, liens, judgments, bankruptcy proceedings and code violations that would affect title to the property before you bid
Make sure you understand the difference between an REO (a property owned by a bank) and a foreclosure sale at the courthouse.
Realize once you have won the auction, you are obligated to pay the balance of funds within 24 hours.
Have a "fixer" ready such as a real estate lawyer, to assist you in clearing up title problems once you receive title.
That an individual buying at the auction is not afforded the protection of a lender with a team of lawyers following foreclosure statutory guidelines.

DON'T

Bid without a title search in your hand
Bid without a lien search and code violation search. Code violations can add up to tens and thousands of dollars.
Buy without knowing if taxes are paid
Bid without calling the Homeowner Association and finding out how much is past due for maintenance fees. You will inherit this obligation as the new owner and will need to pay it off.
Buy a property that is for sale for substantially below its value. You are most likely paying off the Homeowner Association lien or a credit card judgment. You will still inherit the original mortgage lien and may be foreclosed on by those lien holder

Order a title search here

Call 305.271.0100 x 701 or info@theclosingcompany.net for more information