How to Bid on a Trustee Foreclosure Auction Sale in Wake County
Have you ever want to buy a house at #foreclosure #auction but don’t know how? Did you know the average foreclosure auction in Wake County sells at a 30% discount? Buying a home from the foreclosures auction is unlike buying a bank owned home.
Buying a home that was foreclosed and being sold by the bank as Real Estate Owned (REO) is actually like buying from any other seller, save that the seller happens to be a corporation. Buyers can have scheduled viewings of the home, they can have the home inspected by a licensed home inspector, and negotiate the sale, price and terms of the sale just like with any other real estate transaction.
If you are at risk of foreclosure please click on this link.
In the past when REO homes were offered for sale by the bank who purchased it from the trustee auction, they were offered in ‘as-is’ condition. However, as a result of the foreclosure crisis in 2008 – 2011, banks realized they had to make improvements to the homes in order to seller them. Therefore, most REO homes for sale today have been at the very least, inspected, repaired, painted and newly carpeted. Thus, most REO homes are in move-in ready condition and are eligible for conventional, FHA, USDA or VA loans. As a result, most REO homes can be purchased today in Wake County for an average discount of anywhere from 5 – 10%, sometimes more, depending on location, property type, and condition.
However, when buying a foreclosure home in Wake County from the Trustee Auction Sale, things operate much differently. For example, when a foreclosure home is being sold at the County auction sale, bidders are not allowed to inspect the home. Remember, the home is still owned by the individual who is being foreclosed upon. Therefore, the home might still be occupied by persons who may be disgruntled and don’t want people snooping around their home. Furthermore, in Wake County you could be charged with misdemeanor trespassing!
Most foreclosure homes are in desperate need of a deep cleaning, painting and new flooring, and those are the homes that are in the best conditions. In many cases, a foreclosure home will have had the HVAC units removed either by the owners or by professional thieves. In some of the worst cases, the foreclosure homes may have had the copper plumbing and electrical wires stripped from the walls and sold for scrap, sometimes by the owners, other times by the same professional thieves.
As a result, most foreclosure homes will not be eligible for a conventional, FHA, USDA or VA loans. Even if they were eligible for either of those loans, because of the terms of the sale, most buyers will need to have cash, or alternative financing. However, if you are willing to take some risk, and you have access to either cash, or alternative financing, buying a home from a foreclosure auction could be for you.
This lovely 3BR/2BA Raleigh home needs $6,000 worth of carpet and paint but will likely sell for only $141,000 yet it has a market value of $190,000. Call me to get started today. (919) 526-0193