Anyone ever buy an investment at foreclosure auction? Any advice/insight?

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F re foreclosure purchases. Always been interested if its a cash cow I'm missing out on.

I like the idea but my understanding is the bank usually drives up the bid to the point where you are paying close to FMV anyway so it ends up being a waste of your time.

I think typically the bank bids up/starts the bid at or close to the outstanding amount on the loan being foreclosed. Any additional proceeds over debt + costs are returned to the Borrwer/old owner.

I walked through one yesterday. I don’t think I would buy one site unseen. On this one there was a structural, stair step foundation crack, the back of the house was against a mountain, so all that water was coming down on that house. The foundation sill, siding was dry rot, floors were spongy, the little bit I could see of interior walls inside the house were dry rot, it required gut job to the studs, maybe floor joist replacement, water lines didn’t hold pressure, and I found all that in 15 minutes. Doors didn’t close because it wasn’t structurally sound. I’ll pass at 260k. I’m paying land value in that condition. Which was 125-150k. We were too far off so I didn’t make an offer. Probably would have been easier to buy vacant land and build.

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