Auction vs Bank Foreclosures – A Video Analysis
If you are looking for a property to buy as your primary residence, buying at the auction is a bad idea, in most cases.
Negatives of auction foreclosures:
1. Inability to finance (capital intensive)
2. No title insurance (possibility of liens)
3. Possibility of back taxes
4. No thorough inspection
5. No turning back (sales are final)
6. Don’t be fooled by starting bid
7. Confusing process
Buying bank owned foreclosures is a much better idea. Here’s why:
1. Finance just like a non-foreclosure property (down payments as low as 3.25%)
2. Title is clean and fully insured by a reputable title company.
3. If there are back taxes, they are paid at closing by the bank.
4. You get 5-7 days for inspections
5. If issues are discovered during inspections you can walk away.
6. Asking prices are often negotiable.
7. Streamlined process.
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4 Responses to “Auction vs Bank Foreclosures – A Video Analysis”
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Good post – I found this while scanning google for foreclosue info – added ya to my G Reader, Keep up the good work. Looking forward to reading more. Mark
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