What happens after you win the bid?
I have a private investor willing to provide funds 4 a trustee sale. He is willing to issue cashier's check in my name but I was wondering what happens if I win the bid?
I've witnessed a trustee sale before but did not stay around long enough to eavesdrop on the auctioneer and winning bidder after the sale.
Does the auctioneer immediately issue the title to the winning bidder? Is it possible to assign title to the private investor instead or would I have to take title since he will not be present? Is it my responsibility to contact a title company to get title insurance?
What does the auctioneer expect from you besides endorsing the cashier's check?
Thanks in advance 
gbp,
You will have to contact your county courthouse to get more information on how the trustee sale procedure works. Each county handles the foreclosure auctions differently. So it's hard to say how your county does it. You should ask the county or ask the investor providing the funds. If they hand you the check, then they must know what you should do after you win since it is their money...
Tanya
gbp,
What is your location?
Tanya:
Unfortunately, people at the courthouse only know that an auction takes place on the steps and that a "list" hangs on a clip board in the hallway.
My money investor knows nothing about the trustee sale process, but only knows that foreclosed properties is an excellent way to make his money work for him.
Is there any SEASONED REI in Southern California who have actually purchased a home via trustee sale out there?
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Quote:
On 2003-06-25 16:58, tanya1215 wrote:
gbp,
You will have to contact your county courthouse to get more information on how the trustee sale procedure works. Each county handles the foreclosure auctions differently. So it's hard to say how your county does it. You should ask the county or ask the investor providing the funds. If they hand you the check, then they must know what you should do after you win since it is their money...
Tanya
Hello gbp,
You do not take title to the property on the day of the auction. They require 10% and the rest of the money within 30 days.
It is cheaper to hire a lawyer to do all of the paper work than to try to do it all yourself. The lawyer can also handle the title insurance for you.
If you have all the cash to buy the property out right. The closing can take place at the lawyer's office. I think I paid $345.00 to the lawyer in total, this was title insurance in all. The agent that represented the seller and I, alone with the lawyer close the deal within the set time frame.
At another I went through a mortgage company to close the deal. All of this was completed within the 30 day time frame. I had a LOC, I had to have an appraisal of the home and all the other paper work to close on this one.
As to what goes on with the auctioneer, this is just small take and signing the check over for the 10% down payment.
Is Vern in So Cal like the original post-er is? Sorry vern, not an attact, just want to clairfy.
I see that GBP is in Rancho Cucamonga, if I had to guess he's looking at San Bernardino County courthouse, Ontario, and Chino. Here in So Cal you gotta have the full whack on demand when you win. 10% down? Yeah right, we WISH!
I go to auction with a cash backer. I own an LLC, and so does my investor. Together, our LLC's own a 3rd LLC. I bid in the name of the 3rd LLC. To qualify to bid you have to show your checks to the auctioneer (unless he knows you by face/reputation from previous deals/sales).
Before sale, he asks if anyone needs to qualify on that particular property. You walk up with an envelope and show your checks (usually in increments so they don't end up holding your cash after sale). You gotta show enough money to cover at least the opening bid amount plus one penny. Most people know what they're gonna pay ahead of time and have opening bid plus X dollars.
If it's in the name of anyone but yourself (like my LLC example) you need a NOTARIZED letter stating that you are authorized to bid and sign checks on behalf of that 3rd party/LLC/Corporation.
When you win you endorse enough checks in increments to cover the cost, any money left over (a few hundred to a thousand if you did your checks right) can be held up to a month or more, so setup your incremental checks wisely.
California is a pay right now state. FYI. -MakoShark
I have had the person holding the sale for the Trustee go with me to the local bank and cash the Check and leave me the overage. Got Trustee's Deed in a week or so.
MakoInvestments, thanks for the clarification. Just wondering if you've ever personally won a bid at a trustee sale auction? Have you had any trouble with BUYER's lenders refusing to finance the property afterwards because your corporation hasn't owned the property for minimum 1 year?
As for the notarized letter, it just needs to state that I'm the authorized bidder for my investor (he also owns a CORP), nothing else? Or is this a specific format at the courthouse we must use?
Sorry for the bombardment of questions -- I appreciate any info I can get especially from those familiar with San Bernardino County in CA.
Going to Huntington Beach in 5 Mins for a CRR hosted foreclosure forum by Ward from San Diego, Try me again tomorrow. Maybe we can meet up sometime. -MakoShark
G-man,
There is no "canned language" and the court has no specific format. Make a "Letter of Certification" (or a Power of Atty) stating that you (identified by your ID documents, SSN, DL#, Etc) are the authorized bidder and signatory for XYZ LLC and that you do not hold the Trustee, Bene, or Auctioneer/Trustee's Sale Holder liable for any losses incurred by you or XYZ LLC. Your escrow co or lawyer should be able to help you with this. -MakoShark
ps, Ward Hannigan's seminar was PACKED last night, mostly with newbies, a lot of whom had done NO reading or prep. They ought to start here.