Auction Newbie Questions....
I'm in need of some guidance......
I've been to a few auctions as a spectator. Now I've got my eye on a few local properties going to auction next month and would like to bid. I've driven by these homes and checked the comps. What are the next steps?
I know it would help to get in the house, but how? Should I approach the homeowner for a tour if they are living there? Any goods ideas if its vacant?
What other research should be done? What sort of title work is recommended?
What other, common red flags should I look for? 
If owner will show then look. If vacant there may be a window open or a door unlocked. Be careful not to break in. If boarded up take a screwgun and get in and then put back as found. Do a title search. Any other liens where the borrower borrowed the money will be wiped out by the foreclosure. IRS and other liens will stay with the property. Only other things to look for is to make sure it is a bargain especially if you can not get in.
Good LUCK and Thank You
Hope this helps some
Ted Jr
Just to clarify ...arent only lower priority loans erased?...meaning if a first position note forecloses it is the only one that will matter.....If it is a second or a third then all loans hgher in priority will become the responsibility of the new owner. and they will not be erased........
How many of you out there have entered a vacancy by means of a screwgun? I think its worth the risk but is it a common practice among aggressive investors?
I'm a newbie as well and will be attending my first auction as a spectator tomorrow, have you already arranged financing? what steps did you take to investigate if their were any liens or back taxes
go to the county records office and use their computers to search all recordings by the APN and the owners names.
If it is a first that is foreclosing most everything will be wiped out. Here the worst is the IRS and Child Support Liens.
good luck
what risk. If you do no damage to the property like breaking a window or kicking in the door you will not get in trouble. If there are big red no tresspassing signs posted everywher I may stay clear. I have had police stop by once to check to see what I was doing. I was not hauled off to jail in a wagon with thugs. I explained and all they asked was that I do no damage and to resecure the door. It was a know drug area and they knew I was no drug user.
Good LUCK and Thank You
Hope this helps some
Ted Jr
Heres a quick question cygnus, have you done any dry runs on the propertys that have sold at auction? As in have you seen what they sold for at auction then followed up on it and saw what it took for the investor to get the house to market, how much they sold it for and what kinda profit they made?
I have complete confidence in you cygnus, Im just trying to make sure you know exactly what you are getting into.
Best of luck,
James