Buying a house in a sheriff's sale?

[zeitgeist57]

Has anyone done it, or used a professional service? I'vet got follow-up questions, too...

[Gergwheel1647545492]

I think you have to have something like 20% down, and you can't look at the house without breaking into it. That was for delaware county.

[2highpsi]

I've tried to, but got outbid.

I knew the house and the current owner, obviously so did the other guy.

20% of "auction appraised value" is what is required the day of the sale.

There is also a buyers sheet that you should bring, filled out including the parcel number.

You should be able to find most of the info on the sheriffs website of whatever county the home is in.

[2highpsi]

Oh and 99% of the time you will just be bidding against an attorney representing the 1st mortgage holder.

[AWW$HEEET]

The attorney will likely bid up to what is owed, but its free and clear there after. I hear its kinda the old boys club down there too. If you float the people a few grand down there, ill prevent them from bidding up the property you want.

[mmZ06]

The key is finding out how much the first lien holder is owed. You can do this by pulling the complaint at the courthouse. Keep in mind some of these cases can go back a couple years so after adding attorney's fees, interest, and penalties it can be a much higher number. Make sure everyone having an interest in the property is listed in the complaint. You don't want to deal with another lien holder having an interest that was not sent a notice. You can check this on the Franklin County Recorders site. A majority of the deposits are 10% and they typically require certified check. The first thing I would recommend is checking the recorders site to see how much the first mortgage on the property is for. Best case scenario you find a home that was either purchased 10+ years ago and they beat the mortgage down or find someone who did an 80/10 or similar with a recent purchase. Good luck!

[TA In Progress]

I was allowed to make the down payment in cash when I bought mine, although a certified check would have worked as well. I noticed the down payments required on the homes for sale that day varied with the situation (bank foreclosure, delinquent taxes, etc.). The house I bought was at the sale due to delinquent taxes. It previously had 2 mortgages, and only the first mortgage holder showed up to bid. He was the only other person bidding, and once the bidding reached the amount owed on that mortgage plus the delinquent taxes, he stopped bidding and I won.

[RS69]

I think you have to have something like 20% down, and you can't look at the house without breaking into it. That was for delaware county.

 

That is correct...

[zeitgeist57]

Thanks, guys. I've been relaying info to my wife. She's the atty working with her client on a sheriff's auction house...

[Second Gen]

Clay - Bought one as a primary residence a long time ago. Also purchased a duplex through one and got great deals on both of them.

 

As stated above find out what is owed on the primary loan

 

Be ready to pay out a fairly large deposit (20 - 50%)

 

Get preapproved for the rest so you don't loose your deposit

 

Trespassing on the property before the sale is a problem unless they are empty (If the house is empty ask a neighbor if they mind you looking in a window as to not get the Po Po called)

 

If you can look in the basement make sure they did not turn power off completely (Water will tear up a lot of expensive items)

 

Have fun!