Yikes a Novice Lost $200,000 Yesterday Buying Real Estate on the Court House Steps
I would say at least once per week on the Contra Costa court house steps an amateur foreclosure buyer gets absolutely hosed.
Here is fictional character but a real loss.
First off the amateur buyer sees a notice in the paper, about week before the property is going to be auctioned off on the court house steps, the potential buyer drives by the property likes it, calls a couple of Realtors, determines the market value in this case it is $200,000, the opening bid amount is $119,000.
The amateur buyer can't sleep a wink the night before he just lays awake thinking about how much money he is going to make.
Soon as the bank opens, he gets several cashier checks, totaling $150,000 just in case there is some bidding on the property.
He arrives to the steps a half hour early, he is really nervous no one is there.
He goes to McDonald's across the street has a coffee, keeping a watch on those steps, then he thinks, maybe the auction is held in the court house, the guard inside assures him its held outside and sure enough at 10am precisely the auctioneer arrives and starts crying out property address and one after another, properties are postponed another is canceled.
People keep showing up and the steps start to get crowded at least 35 people were gathered around the auctioneer and another twenty people were at the bottom of the steps just laughing and talking he thought to himself "those guys must not have any money".
After about an hour the auctioneer cries out SALES! The auctioneer cries out "This property is being sold as is no warranties expressed or implied" then he give the address, it was the property the amateur was looking at, the auctioneer asked for any buyers, the amateur said he was a buyer and he handed him $150,000 in cashier checks and the opening bid is $125,100 the auctioneer asked if there were any other bidders, there wasn't any, auctioneer says going once going twice going three times sold to amateur buyer.
A few people came up to him and congratulated him and asked him what he thought the value was and he said $200,000 most everyone just shook there head and congratulated him again.
Mr.
Amateur not really knowing what to do after the auction went to the house to talk with the people living there to arrange for the occupants to move when the previous owner opened the door, Mr.
Amateur explained he had just bought the home on the court house the previous owner was a bit confused and told him, the loan he just purchased was the second, the first is going in a week and the first is for $319,541.
39.
Nothing he could do or his attorney could do he just lost all of his money, the following week the lender holding the first deed of trust dropped the amount owed from $319,541.
39 to $150,000 and one of those guys from the bottom of the steps who even congratulated him and asked what he thought the value was purchased the home for $152,300.
Stories like this happen all the time please consult a professional who has a lot of experience with this method of buying a home on the court house steps.
Here is fictional character but a real loss.
First off the amateur buyer sees a notice in the paper, about week before the property is going to be auctioned off on the court house steps, the potential buyer drives by the property likes it, calls a couple of Realtors, determines the market value in this case it is $200,000, the opening bid amount is $119,000.
The amateur buyer can't sleep a wink the night before he just lays awake thinking about how much money he is going to make.
Soon as the bank opens, he gets several cashier checks, totaling $150,000 just in case there is some bidding on the property.
He arrives to the steps a half hour early, he is really nervous no one is there.
He goes to McDonald's across the street has a coffee, keeping a watch on those steps, then he thinks, maybe the auction is held in the court house, the guard inside assures him its held outside and sure enough at 10am precisely the auctioneer arrives and starts crying out property address and one after another, properties are postponed another is canceled.
People keep showing up and the steps start to get crowded at least 35 people were gathered around the auctioneer and another twenty people were at the bottom of the steps just laughing and talking he thought to himself "those guys must not have any money".
After about an hour the auctioneer cries out SALES! The auctioneer cries out "This property is being sold as is no warranties expressed or implied" then he give the address, it was the property the amateur was looking at, the auctioneer asked for any buyers, the amateur said he was a buyer and he handed him $150,000 in cashier checks and the opening bid is $125,100 the auctioneer asked if there were any other bidders, there wasn't any, auctioneer says going once going twice going three times sold to amateur buyer.
A few people came up to him and congratulated him and asked him what he thought the value was and he said $200,000 most everyone just shook there head and congratulated him again.
Mr.
Amateur not really knowing what to do after the auction went to the house to talk with the people living there to arrange for the occupants to move when the previous owner opened the door, Mr.
Amateur explained he had just bought the home on the court house the previous owner was a bit confused and told him, the loan he just purchased was the second, the first is going in a week and the first is for $319,541.
39.
Nothing he could do or his attorney could do he just lost all of his money, the following week the lender holding the first deed of trust dropped the amount owed from $319,541.
39 to $150,000 and one of those guys from the bottom of the steps who even congratulated him and asked what he thought the value was purchased the home for $152,300.
Stories like this happen all the time please consult a professional who has a lot of experience with this method of buying a home on the court house steps.
Source...