Tax foreclosures, auctions, or mortgage foreclosures can offer a buyer a significant discount on the purchase price of a home. However, sometimes, you get what you pay for (and we’re not just talking about the condition of the home)!

                Beyond having to purchase the property “as is”, banks or municipalities auctioning off property will generally not provide a full title search as would be custom in a traditional property transaction. This leaves the buyer with a choice of taking the property subject to unknown liens or other title defects, or paying for a title search themselves. The same is true of a property boundary survey, as, generally, one is not provided by the seller. Buyer’s financing choices are also very limited, with most auctions and foreclosures requiring cash and not allowing for mortgage contingencies.  And, finally, these transactions often have tight timeframes for closing, sometimes with financial penalties if a deal does not close in the allotted time.

                Purchasing property at auction or foreclosure can be risky, but, the perk of these types of deals is that there is generally a few weeks of lead time before the auction takes place. Contacting us early can let us review filings at the Clerk’s office and conduct research on the property to avoid the element of surprise that usually accompanies purchasing properties at auction.