Foreclosure Auction

I'm over here in the Fort Bragg/Spring Lake area of Cumberland County. The market's supposedly stronger here than most places because of BRAC. They're adding 10,000 or 15,000 troops to the base; along with families and support personnel that translates into at least a 25,000 or 30,000 population increase. I'm going to take it slow and advertise "Sell by owner" and try to let the place sell itself, to a special person that fits.
I'll try this for 6 mo-1 year, if that doesn't work I'll hook up with a realtor that specializes in selling.

My biggest problem is the neighborhood. Half of it's rundown and that's the part you see first. My place is fairly secluded, hope that will overcome the 1st appearance impression.

 

Foreclosure purchase

Please hire a real estate attorney to run title and procure a binder for a title insurance policy. Court house sale will not clear property tax liens, assessments, and IRS judgments. Bank (the owner) will only provide a nonwarranty deed, making no representation about defending the title. Title Search may reveal environmental problems as mentioned by VA49er, but only if prior property owner appears to be a Superfund candidate. Most likely nothing will show. Title will also check for flood-plain issues, set backs, right of way.
You stated in a subsequent post that this is one of few houses in the subdivision: Read the covenants, you want to make certain that the other lots cannot be used for mobile-homes or condo's. You also want to read the bylaws regarding community assets and responsibility for them. Any amenities in the neighborhood that may not be constructed as promised because the lots aren't selling?

You also may want to check that all the proper permits were obtained for the construction of the house. This can be done at the inspections office. This being new construction, it may not be an issue. In older homes with expansions and additions, you need to see that the work was done to code. This is for your safety.
The Auction: I assume this is being done with a reserve set by seller. Establish your price, write it down and stick to it. Other houses will come along, you must need to be prepared to walk away.
Good Luck with you searches, it is a good time to be a buyer.
N1r0l


Go ahead and shop for mortgages, the rates are great now and you are in a good position to take advantage of this.

 

All great advice. Mortgage rates are great. We just refinanced for 4.6% fixed 30 years no closing costs.

 

So, I went out there today. Bidding went from 50K to 200K with one bid which was more than I was willing to pay for it. Finished at 215K which is a good deal long-term but there was just enough wrong with the 'bones' of the house that I couldn't do that high. I could have justified 150K. Interesting to watch. Over in about 2 minutes.

 

Talked with a guy over the weekend that is buying up forecolsed properties in decent neighborhoods. He bought up one for $210,000 and then resold it about 1.5 months later for $300,000. Not a bad ROI for 1.5 months.

 

Honestly, I think you could do even better with this property but with a pregnant wife about to have our third kid in a few months, we weren't looking for a flip and would only take on a project for the right money. The $215K is a good deal just not a good deal for our situation.