What should a buyer in CA do if interested in bidding on a foreclosure? The published sale date will be Dec. 2nd, 2008
First thing is to make sure you are comfortable with the following realities of bidding on foreclosures:
- No title insurance.
- No inspections
- Have to pay in cash
- May have to evict the owner or tenants after the sale
Assuming you are ok with that, then do the following:
- Determine the value of the property
- Review the title history and find out what debts may still be owed after you bid. Remember that you aren’t buying the property free and clear - any debt that is “senior” to the loan you buy at the auction is still owed.
- Do your best to evaluate potential repairs and damage. If the house is vacant, or listed, try to get again and inspect it the best you can.
- Line up cash (actually a cashiers check) for the amount you are willing to bid.
That’s a bit simplified, but those are the major points. Take some tiem reading through the other questions here on the forum to get an idea of some of the more subtle issues that can arise.