Are you temped by the lure of buying homes at the Silicon Valley auctions ? Are you paying cash in hopes of immediate possession? Well, you might be in for a rude awakening since there are some serious pitfalls about buying homes at Trustee Sale auctions.
In fact, majority of your headache will just begin after you have won the home at the auction since you will have to worry about eviction, foreclosure cash-for-keys and others inhibitors to your immediate possession.
For instance, if the previous owners are still living in the property you will need to give them ample notice to vacate the property. Just like the banks are offering cash-for-keys, you will need to develop a contract with the home’s occupants to exchange the keys for the house for some cash.
In California the if the foreclosed home in occupied by a tenant with a valid lease, they have every right to remain in the property till the end of their lease terms with the same rent they were paying to the previous owner.
And as if that was no enough of delay for your possession, some States have redemption periods during which the previous homeowner will have the right to buy back the property providing he pays the full amount of the winning bid. The redemption periods range from 1 months to 1 year and could be a reason for the previous owner from refusing to vacate the property.
So before bidding on the property research the home’s occupancy to see if the home is still occupied by the previous owners. Some lenders offer Cash For Keys which is an agreement with the foreclosed homeowner to exchange the key to the property in exchange for a cash payment that they can use to cover their relocation expenses. Finally, understand the eviction process.
As they say, buyer be ware when it comes to buying at Foreclosure Auctions.