Many buyers want to know the process to get in on the “Courthouse Steps Homes for Sale”. There’s really no secret to this buying process but you need to be aware sometimes there are deals to be had and sometimes you can lose your shirt. There is actually more risk with purchasing this type of property than a traditional property on the market but as previously mentioned the reward can be greater. Buyers looking to score deals on buying homes on the courthouse steps should strongly be warned to do their due diligence. Lets talk a little bit about whats involved.
The actual process of buying a home on the courthouse steps is really quite simple, the sale is posted publicly and interested buyers arrive a little before the start time. Once the sale which is in the form of an auction on the steps commences, buyers begin to bid and the property is sold to the highest bidder. Once the successful bidder pays for the property in the form of cashiers check in a cash and carry basis, the auctioneer gives the buyer the deed and the deal is done. At that point the property is now owned by the new buyer. Sounds easy enough right? Not quite, there are many moving parts before and after the process.
Do your Homework if you’re planning to buy a home on the courthouse steps!
So now you know about the buying process, next we’ll discuss the preparation. There are a couple of items that need to take place in order to be prepared to purchase property from the courthouse steps. First and foremost is your due diligence, items like what the property is worth in its current condition, are there liens or encumbrances on the property, have the taxes been paid, etc. These items are things you need to know before bidding because properties sold on the courthouse steps are sold in as-is, where-is condition and the buyer is taking on all liens and encumbrances as they currently stand. Sound intimidating? It should be as there is only reward in taking risks but those risks can be minimized if you do your planning and homework as you should.
Congratulations, you’ve done all your homework and you’re ready to move forward on buying a courthouse steps homes for sale. Wait, don’t you need money? Yes you do! As previously mentioned it’s cash and carry so you need to bring the funds necessary to pay in full for that property if you win the bid. Do people really bring cash? Not actual cash but you do bring cashiers checks in $5,000 increments for the amount you want to spend. For instance if you are interested in a property that you think will go for about $60k then you should bring 12, $5,000 cashiers checks or more if you want to bid higher. If you win the bid, you pay right then and you’re now the proud owner of a property!
Beware, Some Courthouse Steps Homes for Sale are Occupied!
Oh no, I just pulled up to the property I bought and someone lives there! Remember before when I said to do your due diligence, if you did then you would already know the property is occupied. If you didn’t do your proper homework then you’ve just purchased a property that may potentially be occupied and you can kiss the next six months away as you go through the eviction process. It’s against the law to trespass on a property so be creative but legal in your fact-finding missions.
Purchasing foreclosure homes and homes on and from the courthouse steps can be VERY profitable but you need to make sure you’ve done your homework. This type of buying is not for the faint of heart or someone who doesn’t want top put in any work ahead of time as you will lose, big time!