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jerseybred · Aug 31, 2010, 11:54 AM

I seen a house in the legal section of our local newspaper that is being sold on the court house steps to the highest bidder. I actually drove to the house and talked to the current owners. They said they are going into bankruptcy and that is why the house is being sold. They even let me tour the house!! Seems like a nice house but of course I didn't do a home inspection on the spot. I called the trustee listed in the paper and he told me the starting bid on the house. My best uneducated guess estimates the starting bid at 75% of the house value. I would like to purchase this house by placing a bid at the steps of the courthouse. I was just wanting to know if this sounds like a good ideal, what issues I might face, if anybody has expierences with this sort of thing and advice to give. I am interested in this house as my own residence, not trying to make a profit, just want to buy a house I can afford. Thank you.

jerseybred · Aug 31, 2010, 11:57 AM

Some additional info: 10% down at time of auction with balance within 30 days. Thank you.

ScottGem · Aug 31, 2010, 12:07 PM

First, there will probably be other bidders. Second you have financing in place before you make a bid. Third 75% is not that great a bargain.

jerseybred · Aug 31, 2010, 12:19 PM

Yes, I have considered that other bidders might be there. I am not willing to overbid and they can have it, if that happens. I live in a rural area with very low unemployment so do not think there will be many if any other bidders, but we will see. Second, I can get financing. Third, I know 75% is not much of a deal but it is better than 100%. Has anybody ever done this? Is it difficult? In this market can I get a house cheaper than 75% of value?

ScottGem · Aug 31, 2010, 12:34 PM

If you think the house is worth it, go for it.

Fr_Chuck · Aug 31, 2010, 06:33 PM

A couple things, first what is the actual value, have you compared it to those selling in the area.

Many houses are not even worth 1/2 of what they were 3 years ago. Esp in smaller depressed area towns. ( and the inner cityof major cities)

For example on a foreclosure, I bought one last year for less than 50,000 that sold 3 years earlier for over 150,000. Plus I was able to have a home inspect where I could have still backed out.

Next if it does not sale at 75 percent, what is the loan value of the home now ? It may go for less if no one buys it at this sell, or if no one bids at first and they have to lower the opening bids.

jerseybred · Sep 2, 2010, 12:58 PM

The houses in my area were never really that overpriced to begin with and haven't come down in price much since the housing fall. The only thing different is that the houses are not moving but it seems sellers do not care because they are not willing to lower their prices much. I have been researching homes in my area that is why I think it is about 75% of value. I have considered waiting for the bank to buy it back at auction and then going through their REO realtor, the only problem I see is realtors around here have a tendency to buy these houses and then just sit on them. Wow, you did really good buying your house. Did you buy it at auction or through a realtor? Do you think they will lower the opening bid or will the bank just sell it as a REO, that seems to be how it is done here. I am leaning on going to the auction and see how things go. I would rather buy it through a realtor so I could do the home inspection, termite inspection and all that but just do not want to lose the house. I am also afraid it might have liens and so forth, but I am planning on going to the court house and looking at the deed. Is there anything else I need to look at or watch for? I read horror stories on the internet but surely there have been success stories also?