With all this talk of foreclosures in the news these days, there are certain terms that are beginning to sound as familiar as the screech of your alarm clock every morning. One of the most commonly heard is public trustee auction or PTA. A PTA is quite simply when a foreclosed property is put up for auction. It's a grim concept for people struggling to make their mortgage each month or for those who are already behind on payments. If a property owner has reached the point in the foreclosure process where a trustee auction of a home is being scheduled, it's usually too late to recover the property.
A trustee auction can represent quite an opportunity, however, if you are in a position to take advantage of it. At a Public Trustee Auction, the foreclosed property is sold to the highest bidder for cash and often at a steep discount. Typically the trustee is interested in moving a property quickly and will not hold out for the kind of prices commanded in a seller's market. Traditionally, prices at auction were slightly discounted, but with the glut of foreclosed properties saturating the market in many parts of the country, trustees are so eager to unload that they are often opening bids at incredibly low prices. With houses being sold for pennies on the dollar, the real estate investment business has started to shift its focus to a new, exciting path to profit. There is a clear and present way to make some serious money. If you are in a position to jump on these distressed properties, there's definitely money to be made. Start keeping your eyes out for auction notices published in the newspaper and, with some careful due diligence, jump into the latest game in town.
Given the current economic climate, more and more auctions are taking place and there's money to be made for the savvy investor. But like every other money-making scheme, when it comes to auctioned properties, you need to know what you are doing. Foreclosed homes at auctions are bid on by buyers who have only seen the property from the street. There's no realtor hovering at the front door to give you a royal tour of the interior. Of course, this is a rule made to be broken and it regularly is. Walls are scaled, hedges parted, windows peaked through, all in an attempt to get a better sense of the state of a property by prospective bidders. The good news is that contrary to popular myth, most foreclosed properties are not trashed by their former occupants. More likely, the occupants are still there which can make it awkward to preview the property.
In standard real estate transactions, the seller has to represent the true state of the property to the buyer under full disclosure. A trustee has rarely even seen a property being auctioned and does not have to make any warranties at all to the highest bidder. Caveat Emptor or "let the buyer beware" has never been more of the essence than at a public trustee auction. The skeletons in the closet of a foreclosed home may come back to bite you. There is definitely good money to be made, but before you dive in, do your homework, know the property and the market. Oh yeah and bring cash.
Kevin Roberts California DRE Broker 00858916
Kevin Roberts has Flipped to investors over 300 properties from the court house steps during the last two years. By developing the triple check process all properties are Guaranteed to be sold with good title.
Kevin Roberts covers 4 to 6 trustee auctions daily in Contra Costa County and Alameda County, CA., all property is bought first then flipped to investors after the auction is over.
To get more information on buying a foreclosure property or a trustee sale for all cash visit http://www.TrusteeAuction.org
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