Has anyone bought (or bid) on a foreclosure at the actual Courthouse auction (like the ones in the videos above) ?

If so, would share your (or someone else's) success story ?


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Gosh, Monika, I don't know why any investor would want to buy a property this way unless they were picking the property up for pennies on the dollar.

First, if you buy on the courthouse steps, you are buying sight unseen - the best you can hope for is to drive by the property. You'll have no idea what's going on inside - so BUYER BEWARE!

Second, you must pay all cash! The less leverage you have in a property the lower your ROI is. Most savvy investors use as much leverage as possible while still cash flowing, and that's it.

Third, normally the bank will out bid anyone there if an offer is not made that will cover their existing exposure in the property, which in some areas can be more than the current fair market value.

So you're better off waiting until the house becomes a HUD or REO, inspect it, get financing, and then buy. Make sense ?

Sharon
Sharon’s Real Estate Investing Support