A few days ago I posted A Night Before Auction.
It is when adrenaline in rushes in your blood and you are getting all excited in anticipation. There was going to be a fight and we knew about it. The reason was that the first mortgage was small, and the judgment was just about $62K on a condo in Royal Atlantic in Daytona Beach Shores, valued at more than $200K. There was a much bigger second mortgage, but in foreclosure second lienholders usually do not have any say.
We checked with the association and they were glad to tell us that the owners owed them over $10K in unpaid association dues.
The morning of the auction we checked the computer, and yes, it was not taken off the list. So, we drove to DeLand to the County courthouse, went through the checkpoint, and went to courtroom. The condo was one of the last on the list, and we sat through the auction, until the condo was announced.
I was quiet until the initial rush was over and the officer of the court started counting. Then I jumped in and from this point there were two of us, bidding for this unit until we got to $150K, which was my winning bid. From $75K, when all other bidders except one lost interest.
It was a strange feeling. Yes we won (for my investor), but we really got it at the limit we set for it. The second lender would get a bigger chunk than what they could expect in their wildest dream.
The guy that bid against me, is not a real estate professional, but he is a shrewd investor and understands values perfectly. I have lost so many bids to him, when my investors wanted to be very safe.
This time we won, but there is not much money to be made on this unit. And this is the story with buying at foreclosure auctions. Many people think that it is a place where they buy for pennies, and everybody is sitting and letting you do it. They simply have never been to the auction. And maybe this helped them save money.
Buying at auctions you really need to know what you are doing. And even when you know, the risks are high. We are still waiting for the issuance of Certificate of Title, before we would be able to enter the unit and see what we bought.
We still might be up for a big surprise.
And for now we are patiently waiting to see if we have won...
We are looking for a couple of investors who want to work foreclosures. Not BS, real foreclosures in Daytona Beach Area...
Call me 386-405-4408.