Get Rich Education 324: How To Find Deals At Property Foreclosure Auctions
Learn mistakes to avoid and how to buy a distressed property at a discount at a foreclosure auction.
First, the average borrower now has $194K in home equity due to high recent home price appreciation. Only 3% have a negative equity position.
Freddie Mac shows home prices up 9.7% year-over-year.
First American’s Real House Price Index accounts for home prices, interest rates, inflation, and affordability. The surprise? Real prices are down 26.8% since January 2000.
Today’s guest, Colin Murphy, is an acknowledged expert in buying properties at foreclosure auctions. He reveals how it works in some Florida counties.
Death, divorce, drugs, and unemployment can all lead to a borrower missing mortgage payments and having their property fall into foreclosure.
Foreclosure auctions have moved online in states like Florida (but not Texas). Often, you must give a 5% deposit at bid time, 95% balance paid same-day.
2 minutes of bidding per property.
Learn how high one should bid on a foreclosure property. You can find mortgage, lien and permit information online. You must know how to estimate renovation costs. Assume the worst.
Foreclosure moratoria have created low inventory levels in the market.
Resources mentioned:
More about Colin Murphy:
FATCO’s Real House Price Index:
https://www.firstam.com/economics/real-house-price-index/
Recent Homeowner Equity Gains:
https://www.cnbc.com/2020/12/10/homeowners-gain-1-trillion-from-pandemic-driven-housing-boom.html
Show Notes:
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