Before You Bid on a Condo AuctionWith the help of Walletpop, All My Sons of Raleigh is going to help you with a few things you should know if you’re thinking about bidding on a foreclosed home in auctions. One thing you should look at closely is the fine print. If you plan on attending an auction related to your county’s courthouse, consult with a real estate attorney so you can research the title before you make the bid. Because it’s possible to buy the property and still have to deal with other liens on the property, like a second or a third mortgage, back property taxes or homeowners association fees that weren’t paid.
Under the law, in half the states, when you buy a foreclosed home at a foreclosure auction, the former owner has a right to redeem their rights to the property anywhere from 6 months to a year afterwards. The Raleigh movers suggest that if you buy a place from an action of REO properties, read the terms and conditions of the auction. Most will allow you to finance your purchase while courthouse foreclosure auctions don’t. But they also take non-refundable cash deposit from the auction winner and add a buyer’s premium on top of the bi, up to 5%.
Know your numbers. If you’re thinking of investing in a cheap condominium, you still have to create a written cash flow projection to see if you’re investment will actually pay off. If you want a mortgage, you must factor that in as well as the mortgage insurance and closing costs. And if you’re buying it cash, you still need to take into account home owners association dues, property taxes, landlord’s insurance and utilities and so on. You should also think about what it’s going to cost you to maintain the place, especially if you have a high turnover of tenants.
When you’re buying a place in a foreclosed auction, you have to also make sure the location is good and maintained. You want to make sure the complex and community itself and home owners association is healthy as well. Make sure there aren’t many dues or repairs that need to be done in the communal areas like the pool or roof.
The Raleigh local moving specialists also recommend you know what the rules are in terms of the landlord-tenants laws and restrictions. Some place let owners of a unit have tenants only a year after they’ve bought it. Some have rent-control and eviction-control regulations so you might not be able to raise the rent as you like.