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Questions and Answers / Re: Difference Between Tax Sale And Sheriff Sale.
« on: November 12, 2008, 05:07:26 PM »
This a risky route to go on. Years ago I attended many of these auctions, a lot of times there are no bidders and the auction gets reschduled. The Banks stay on the title so you are still responsible for the mortgage amount. Usually these people are still living in their properties so good luck getting them out. I spoke with a few regulars at these auctions, some of them said that they have made money but have also lost money on some deals. Better hope that the first one you buy is a money maker.
A freind of mine ( a contractor) had to go through this porcess as well when one of his clients failed to pay him for the work done, work was well in excess of $150K. It took him three auctions to get his money back.
Its impossible to know your return because you do not know the condition of the house, how long it will take to evict the owners etc... The ones that I had gone too had a profit margin of 20-30K after all costs. Thats not a lot of money considering that you do not know how much money will be have to spent on the inside.
A freind of mine ( a contractor) had to go through this porcess as well when one of his clients failed to pay him for the work done, work was well in excess of $150K. It took him three auctions to get his money back.
Its impossible to know your return because you do not know the condition of the house, how long it will take to evict the owners etc... The ones that I had gone too had a profit margin of 20-30K after all costs. Thats not a lot of money considering that you do not know how much money will be have to spent on the inside.