Tommy Mac Discussions › Forums › Fix-it Forum: Home Improvement & Do It Yourself Repair Forum › Foundation › A few basics on buying repo’s
When a home is repo’d it is auctioned at the court
house. If there are liens against the property you
could be liable for them on top of the purchase. You
can do a title search to check for liens,prior to
the auction, but you still may not find recent encumbrences.
This is not a good way to buy repo’s, in my opinion.
And I have bought and sold several.
Normally the bank that held the loan bids at the auction, the
amount they were owed and gets title to the property.
The bank will then either sell, or turn the property
over to HUD or VA and they get their money back.
If the bank sells, you get a clear title. Often though
the bank sells through a realtor, the realtor will
have investors they work with that will get the good
deals. It helps to find the right realtor, to get
in on a deal. Call around and ask questions and you can
usually find the right one.
On insured loans the bank turns the property over to
HUD or the VA. You can find these and several others
at http://www.hud.com , you will still need a realtor to
bid on HUD or VA, it works like an online auction.
Here again find a realtor that has done this before
or it can be tricky. Here you will get a clear title.
And beleive it or not, HUD often will sell a house
for less than it was auctioned for at the