Real Estate Auctions are a hot topic today. You see them advertised everywhere. But are they a good deal? Well like most things the answer is…maybe…if you know what you are doing. There are two types of Real Estate Auctions: Trustee Sale Auctions and Lender Auctions. Trustee Sale Auctions are held by the Trustee under a Deed of Trust. The minimum bid is usually the amount owed to the lender plus any costs incurred. The winning bidder must have a $10,000 non-refundable deposit at the time of the auction and the balance of the funds in cash the next day. Clearly these auctions are for people with deep pockets of cash – they are not for anyone who needs a mortgage. These properties are generally sold “as is” and may have multiple liens on them. It is possible for a lien not to be extinguished during the foreclosure. You need to be very careful about the existing liens. I’ve seen some bargain Trustee Sales recently but if you don’t know what you are doing you can get burned bad.
If you are interested in more information about Trustee Sale Auctions, feel free to email or call me.
Marc Brodeur, BS, DC
Realtor
www.ThePhoenixExperts.com
Marc@ThePhoenixExperts.com
(602) 692-4288
1-800-300-0263
