Top

Do You Have The Foreclosure Blues???

January 31, 2006

Just yesterday, I attended a foreclosure sale, that was literally packed full of other investors. I’m sure it’s pretty much the same in your area. The home being foreclosed on was worth an estimated $35K in it’s as is condition.

It was amazing to see the bidding start out at $20K and itch its way upward and end at over $50K. And what was scary was some of these investors bidding didn’t know if the foreclosing bank was a first mortgage or a second!

That’s the first sign of a disaster. If you’re going to bid at the auction, then know what you’re bidding on and what position the lien was in. It’s not a pleasant experience to win a foreclosure auction, only to find a superior lien that has to be paid off before you can sell. That’s never happened to me because I’ve always done my due diligence.

These guys got too emotionally involved in the bidding process and lost all reason for buying at the foreclosure sale which was to get a deal at a deep discount. Anyway, what do you make of a foreclosure sale that happens this way?

Do you take part in the bidding war? Or sit back and have a bitch session about the situation? I think not. This is an excellent opportunity to get to know others with deep pockets. Simply observe what’s going on around you and network to get to know the other guys bidding.

See, these guys are an excellent source for private money or to flip your deals to.

If you fail to see this as an opportunity, then you’re a real knucklehead. Where else can you find so many red-hot, motivated buyers, all at one place with money ready to buy deals?

That’s it for now; I’ll be back in a few days to finish my article on the Desperation Factor.

Written by Derek Pierce · Filed Under Real Estate Investing  |

Comments

2 Responses to “Do You Have The Foreclosure Blues???”

  1. on March 4th, 2006 10:53 pm

    You speak straight, no zig-zag, and to the point, never scare to give what you have, there are no secret with you, because you are an open book, but a sincere open book, and you give in abundance, that’s what is been rich, may God blesh you in more abundance so you keep giving of yourself,and your knowledge.

    Best Regards,
    RobertMedina

  2. on April 29th, 2006 10:17 am

    Thanks for this perspective, Derek.
    I’m in the process of negotiating with the lenders on what could be my first R.E. deal.
    I’ll definitely ask this key question next week,
    about any “superior liens” that must be paid off
    before we can sell the property.

    Again, much appreciation for sharing your experience with us.

    Pat

Got something to say?





Bottom