Is it worth buying foreclosure properties at the courthouse auctions ?


Question:
I'm considering going to the local courthouse and bidding for foreclosed properties but I am nervous of hidden costs, etc.

Answer:
In my opinion, it's the best way to buy a house. There are no hidden costs. You first need to do your homework. Find out the appraised value of the house, what the last owners paid for it, etc. Then decide what the top dollar is that you're willing to pay for it. Before the auction starts, someone will go over the rules of the auction and so on. Pay attention. Most of the ones I've bought required 10% down if you are the winning bidder and the remainder to be paid within 30 days. Once you write the check, they hand you the keys and that's it. No closing, no closing costs, no deed check, and so on. Then a judge will review the terms of the sale, and sign off on it. It doesn't matter at that point if there were 30 liens on it prior to the sale, the house is now yours free and clear.
If they are priced low enough, yes.
Be sure you know values in the neighborhood.
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