One of the many benefits of working with the Kelly Cook Real Estate Group is the access to purchase foreclosure properties at auction. Buying properties at auction is a very good acquisition strategy for buying real estate, but definitely takes a higher risk tolerance due to the lack of due diligence on a property that is available in some cases. You can certainly find great deals and buy real estate at a discount using this strategy. However, we highly recommend you use someone experienced in this arena to assist you in this process as it can be complicated. Kelly Cook Real Estate Group is experienced in this arena and will provide you with all of the tools and resources needed to buy properties auctioned off at multiple different trustee offices Monday-Friday in Maricopa and Pinal counties.
What services will the Kelly Cook Real Estate Group provide to me so I can successfully purchase a foreclosure property at auction?
We will provide you with a list of all of the properties going to sale the very next day. We will provide this information to you in the form of an excel spreadsheet that is filled with detailed information pertaining to each and every property, including but not limited to, opening bids, and projected market values. This information is extremely valuable to help you make a determination as to which properties you may want to bid on.
Next, you simply let us know what property(s) you’re interested in and in most cases we will do a drive report so you can see the exact condition of the property the day it goes to sale (assuming conditions allow us to do so). We’ll also do a title search and assist you in your due diligence. This will help ensure there aren’t any liens or back taxes due against the property. In the event any back taxes are due you can still buy the property but be aware you’ll be responsible for paying the back taxes if you win the property. In addition, the same applies for any outstanding liens. However, our recommendation is to stay away from properties that have pre-existing liens attached to them as there are plenty of properties on a daily basis that have a clear title making your acquisition of the property much easier.
Once properties are identified, we personally attend the trustee sale and bid on those properties. Upon successfully winning the bid, we will assist in getting the deed transferred into your name as soon as you pay off the remaining balance less your $10,000 earnest deposit.
What is the process of a property going to trustee sale in Arizona?
By law in Arizona a lender must appoint its trustee, the person or entity that has the legal right to sell the home in a trustee sale. That specific trustee will handle the appropriate paperwork. Assuming that the home owner has not reinstated the loan, the trustee will conduct the sale at a previously disclosed location. Every bidder is required to provide a $10,000 deposit to bid on the home in the form of a cashiers check made out to the individual trustee who is making the sale. At such time, the home is sold to the highest bidder, which may include the mortgage company.
Once I’m the winning bidder, what happens next?
If a bidder successfully wins, he or she has until 5:00 p.m. of the following day (assuming that it is not Saturday or a legal holiday) to pay the remaining balance in cash or other acceptable forms of payment as determined by the trustee. Should the bidder fail to pay by 5:00 p.m. of the following day, his or her $10,000 deposit is forfeited and the second highest bidder is given until 5:00 p.m. of the next day.
Proceeds from the sale are used to pay off the primary lien (trust deed) against the home (as noted on the trust deed). If any proceeds remain, payment is made to junior lien holders in order of priority. In the event that any remaining balance is left over from the sale, the trustee will remit the balance to the ex-home owner. Title is conveyed to the winning bidder by a trustee’s deed. This transfer of title relinquishes any right the previous owner has from reinstating the mortgage or redeeming the property after foreclosure. In addition, the trustee’s deed clears the title of any liens and encumbrances that are junior to the trust deed.
Contact the Kelly Cook Real Estate Group today to discuss how we can help you acquire real estate through foreclosure auctions!