Some of the best rehab deals I’ve seen have been bought at foreclosure auctions. Yet, when the rewards are high, so is the risk. The risk comes from many unknowns that are unique to homes sold at the auctions. One of the unknows is whether it comes with its former occupants and, if it does, how to deal with them. There are several reasons why you might be wary of buying a foreclosure that is still occupied.
In the regular transaction between a seller and a buyer, if a seller fails to deliver a clean title, the contract becomes void. No buyer wants to buy a property with someone’s else debt secured against it. It’s the sellers’ responsibility to satisfy all liens secured against the title they are about to transfer. However, this is not how a foreclosure auction works. The simple truth is that failure to research liens before buying a foreclosure can create numerous problems. Here’s how to do your homework in advance, so you don’t regret making that winning bid.
Leo Tolstoy said: “Happy families are all alike; every unhappy family is unhappy in its own way.” As a hard money lender with over twelve years of experience, allow me to wax poetic about my area of expertise. All successful rehab transactions are alike; every unsuccessful is unsuccessful in its own way. Today I want to share a cautionary tale of how title issues after a foreclosure auction can impact a deal.
48 Michael Ct Gaithersburg MD 20877 Offered at $150,000 Condo fee: $293 Rental Income: $1,600+ The only four-bedroom condo in the subdivision! Year built: 1973 Property type: condo/townhouse Levels: 2 levels Living area: 1,365 Assigned parking and plenty of visitors Bedrooms: 4 Bathrooms: 2 ½ CALL OUR SENIOR UNDERWRITER MELISSA FOR DETAILS. 240.436.2340 […]
Gwynns Falls Pkwy, Baltimore, MD 21216 With questions, please call Melissa or Kyle at 240.436.2340.
This article is a continuation of our series on increasing your hard money rehab ROI. In the previous installment, we’ve discussed ways to strategically allocate your hard money rehab dollars to the areas that have the most impact on your sales price. Today, we will be tackling additional strategies. As a hard money lender, I’ve seen many of our experienced borrowers make their rehabs look more expensive than they actually are by getting the right materials and playing with modern design trends. Here are three best tricks of the trade to give you the bang for your rehab buck.