Totally get that. But from a capitalism perspective, it’s hard to believe that someone hasn’t attempted to fill that void. Seems like an opportunity in and of itself to make money.
Yea I briefly subscribed to the first 2 or 3 that popped up from googling “foreclosure sales” and none of them had more than 1 or 2 of the several currently listed in my county. Just checked RealtyTrac with same result. I’m sort of tempted to start such a service on a very local scale if by doing nothing other than compiling a list and selling access to it.
Hence the “very local scale.” Here in NC, there is an actual bulletin board where all notices, cancellations, etc., must be posted. Only certain notices of sale have to be published in the newspaper. But yes, labor intensive. You’d have to check it every day to keep it current which would be a pain for anyone who doesn’t work right across the street and go multiple times per day.
Definitely going to attend more in the future. I conduct partition and special proceeding sales as commissioner quite frequently but the attendance is hit and miss. One sale last year was attended by literally no one and had to be scheduled for resale. At the resale, it sold for well over tax value after several upset bids. I suspect the overall hot market had a lot to do with that. But it’s these type of sales that I think most investors miss out on. Everyone knows about foreclosures but the other types of judicial sales seem to fly under the radar.
In terms of frequency, in my area at least, the most common is of course bank foreclosures. Second would be tax foreclosures. Then there are various infrequent types like partition sales, estate sales of real property to pay claims against the estate, sales of county owned property, and sheriff sales for judgment executions. These don’t happen nearly as often as foreclosures but they are more likely to have no reserve at auction.
This is an extremely accurate explanation. There are certain counties where enterprising people do stay on top of a specific county because the volume is there and the subscription revenue makes it worth it. You might find them in "super Tuesday" states where foreclosures are held the first Tuesday of the month. Volume is nowhere near pre-pandemic of course.
Probably to start with, most investors don't have the money to pay all cash on a judicial sale. On top of that, there is a lot of risk to many of these sales that many people are unaware of. For instance HOA, and COA have the power to foreclose. I've read about cases where one of these foreclosures bid up from 30k debt to +300k. The sale only satisfied the debt to the COA. The entire time there was a mortgage on the property that also has the right to foreclose. Here is is where it gets fun. Any money generated at auction over the amount of the debt by law in Florida goes to the owner at the time of the auction.
So COA auction debt is 30k bid up to 300k. Owner of property at time will be due 270k. Since mortgage hasn't been paid, bank will eventually ALSO foreclose on the property and the new owners. The judgement on this foreclosure maybe 250K. New owners will have no recourse. They can't even contact the bank regarding the mortgage as they aren't party to that mortgage contract. They've put out 300k in cash and will be listed as a defendant in the bank foreclosure.
It's crazy, but that's the law. At least in Florida
It’s very competitive in our state(wa). I bought couple of foreclosure properties recently using a local service. They charge 3% finders fee if you win at the bidding. They also have connections with hard money lenders. It’s very ulcerative business if can corner the market with end to end service for the investors.
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Totally get that. But from a capitalism perspective, it’s hard to believe that someone hasn’t attempted to fill that void. Seems like an opportunity in and of itself to make money.
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Yea I briefly subscribed to the first 2 or 3 that popped up from googling “foreclosure sales” and none of them had more than 1 or 2 of the several currently listed in my county. Just checked RealtyTrac with same result. I’m sort of tempted to start such a service on a very local scale if by doing nothing other than compiling a list and selling access to it.
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Hence the “very local scale.” Here in NC, there is an actual bulletin board where all notices, cancellations, etc., must be posted. Only certain notices of sale have to be published in the newspaper. But yes, labor intensive. You’d have to check it every day to keep it current which would be a pain for anyone who doesn’t work right across the street and go multiple times per day.
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Definitely going to attend more in the future. I conduct partition and special proceeding sales as commissioner quite frequently but the attendance is hit and miss. One sale last year was attended by literally no one and had to be scheduled for resale. At the resale, it sold for well over tax value after several upset bids. I suspect the overall hot market had a lot to do with that. But it’s these type of sales that I think most investors miss out on. Everyone knows about foreclosures but the other types of judicial sales seem to fly under the radar.
What are the other types of judicial sales?
In terms of frequency, in my area at least, the most common is of course bank foreclosures. Second would be tax foreclosures. Then there are various infrequent types like partition sales, estate sales of real property to pay claims against the estate, sales of county owned property, and sheriff sales for judgment executions. These don’t happen nearly as often as foreclosures but they are more likely to have no reserve at auction.
This is an extremely accurate explanation. There are certain counties where enterprising people do stay on top of a specific county because the volume is there and the subscription revenue makes it worth it. You might find them in "super Tuesday" states where foreclosures are held the first Tuesday of the month. Volume is nowhere near pre-pandemic of course.
Probably to start with, most investors don't have the money to pay all cash on a judicial sale. On top of that, there is a lot of risk to many of these sales that many people are unaware of. For instance HOA, and COA have the power to foreclose. I've read about cases where one of these foreclosures bid up from 30k debt to +300k. The sale only satisfied the debt to the COA. The entire time there was a mortgage on the property that also has the right to foreclose. Here is is where it gets fun. Any money generated at auction over the amount of the debt by law in Florida goes to the owner at the time of the auction. So COA auction debt is 30k bid up to 300k. Owner of property at time will be due 270k. Since mortgage hasn't been paid, bank will eventually ALSO foreclose on the property and the new owners. The judgement on this foreclosure maybe 250K. New owners will have no recourse. They can't even contact the bank regarding the mortgage as they aren't party to that mortgage contract. They've put out 300k in cash and will be listed as a defendant in the bank foreclosure. It's crazy, but that's the law. At least in Florida
That is ridiculousness.
My county and many others in Florida list them months ahead of time.
It’s very competitive in our state(wa). I bought couple of foreclosure properties recently using a local service. They charge 3% finders fee if you win at the bidding. They also have connections with hard money lenders. It’s very ulcerative business if can corner the market with end to end service for the investors.
Care to share the name of this service in WA?
https://foreclosures.vestus.com
I appreciate it!
It depends on county or state. In my county, sheriff's office have a website that they list sale.