Has anyone ever bought a house at an auction?

[quakerboy]

I dunno. In theory it sounds good. Get it cheap, rip it to shreds and redo it however you want, still at less cost than buying a house? There's gotta be a catch here somewhere, right?

[flvegan]

1. You mean a foreclosure auction, or a tax deed auction?

Two VERY different things with two very different ways to look at them.

If you're considering either, I STRONGLY recommend you have a title search/exam done before any bidding is done, as well as a visual inspection the day before/of the auction.

Also be aware that in many states, if you're the successful bidder, you may not only be responsible for carrying out any evictions needed, but also for fees invoked by a condo association or the like.

[quakerboy]

3. What are the differences?

I have noticed both online. Although for the tax deed stuff, all I can find are bare lots.

What sort of things might I find with a title search? One person mentioned that there might be "other liens" on an auctioned property. Is that what a title search would find for me?

Yeah. I would never buy without looking. And I have no interest in evicting, so I am only interested in empty places.

[flvegan]

4. I can only speak to Florida properties, as I'm in the biz.

First, a title search is a mandatory need. You have to see what public records are showing in regards to the property. For example, a foreclosure sale. Looks like a great deal. It's a $200k house getting f/c on and the final judgment is $30k. What a bargain, right? Turns out, this is a f/c of the second mortgage. You just paid $30k at auction for a $200k house that still has a superior $200k loan that is now your responsibility. In Florida, the Lis Pendens (commencement of a foreclosure) bars any future interest from attaching to the property, but you have to be sure that every interest has been named as a defendant and subsequently wiped out by the f/c action in court.

Tax Deed, well now you have to file suit to Quiet Title. That means lawyer and court fees, and time. Easier, because (again, Florida) property taxes trump everything and a Tax Deed wipes out every interest on the property, but before you have marketable title, you have to do the cleanup work.

[handmade34]

2. can be a good deal

risk though. I bought a house at auction 20 years ago and got an awesome deal. Nowadays, there are many more people (mostly contractors/investors)bidding and you must get as much information as you can before bidding. Usually need a large amount (cash or cashier's check)with you at auction ( $5000. at my auction) I would do it again if the opportunity arose...