Online foreclosure auctions do not seem to provide bargains. Are REOs better deals than auctions?


#1

I’ve been contemplating of bidding and buying at online foreclosure auctions, such as https://www.miamidade.realforeclose.com

The best deals seem to be the HOA foreclosures, on the surface. However, the buyer is on the hook for the outstanding mortgages, which make these terrible deals.

I’ve been scanning through a few weeks of historical auctions and it does not seem that 3rd party bidders are getting bargains. If they are, it must be rare. What kind of discounts are others getting? Is it worth taking the risks of buying at auctions?

I found a title search company who will provide reports on auction properties (http://www.titlesearchflorida.com). This way, I know if there are outstanding mortgages, liens, etc., before bidding. Should I be using an attorney instead?

Will I need an attorney to close the deal and evict the homeowner? How long and how much will it cost to evict the homeowner?

What is the range and average cost to rehab these auction homes?


#2

I live in both FL and Ca. Have been involved w. fcl. in Ca. for half a century. I know very little about Fl. foreclosures. In Fl., they are run by the Court system.
You can bid online, at least in Miami, Broward and some other counties. Go to the Court web site in those counties to get further info. It appears you can look directly at the Court file to verify what you are bidding on is a first. You have to have money on deposit before bidding and I forget when you have to pay the balance.
You don’t need an attorney to “close the deal”. As a newbie, you will need an atty to do an eviction. Offering them money to move is a much better option.
I gather evictions in Fl. can take a while.
A “rehab” can cost anywhere from 0 to the cost of tearing down a home if the former owners have gutted it.
At least in CA., most of the old time professional bidders can’t compete against the new people who aren’t using their own money - because they are paying almost retail. These new groups are able to get tons of money from investors who are tired of earning 1/2 of one percent at banks and don’t realize the risks. The old time buyers used their own money.
Many do find they can, on occasion, find a better deal on the MLS (an REO) and can get it because they can pay cash. There is no risk as to title or to condition of the property.