Buying a property at a trustee’s sale (also known as a trustee sale) is the riskiest method of purchasing real estate…but it also can be the cheapest way to buy real estate, if you are a cash buyer in California. Investors (both private and institutional) are the typical buyers at trustee’s sales, buying properties at wholesale prices to flip for a quick profit or to hold as a rental for investment.
Here are answers to the top 10 frequently asked questions about Placer County trustee’s sales:
1. What types of properties are auctioned off at Placer County trustee’s sales? Real property – residential (homes, condos, apartments, lots) and all types of commercial buildings and vacant land.
2. How can I find out which Placer County properties are going for auction? Check your local newspaper for the “Notice of Trustee’s Sale” publications or subscribe to an online foreclosure database for a monthly fee.
3. Can I see the Placer County properties before I decide to bid on them? If a property is listed for sale, you may be able to view it with your real estate agent. Otherwise, you can drive by the home and maybe even peek through the windows.
4. Will I be able to get title insurance before I buy a Placer County property? No. Trustee’s sales are cash transactions and don’t go through escrow and a title company, so you would not be able to obtain title insurance for a trustee’s sale purchase.
5. How can I find out if there any existing liens on the property? Visit the County Recorder’s office at the county in which the property is located to search public records. In some counties, this information is available online.
6. How do I bid on a property at a Placer County trustee’s sale? Show up at the time and place specified with money to bid and listen for your property to be called. You may be the only bidder or you may have competition.
7. Every time I come to bid on a property, it gets postponed…why? There are three basic reasons why a property’s auction will be postponed: bankruptcy, beneficiary’s request or trustee’s discretion. Number four: no reason.
8. What does it mean when the auctioneer calls a split bid on a property? A split bid means that if anyone bids on the property at the opening bid, the lender will also bid on it at a much higher price and the property is then likely to be bank owned.
9. What do I do if there is someone living in the property I buy? You can either let them stay and rent (I’d recommend having them sign a lease/rental agreement, if this is the case) or ask them to move out.
10. Should I offer the occupant cash for keys or should I evict them? It’s your call, but cash for keys doesn’t always motivate the occupants to move out. If you evict them, I’d recommend hiring an attorney unless you are experienced with evictions.
If you have any further questions about the trustee’s sale process, you may want to consider hiring Souza Realty to represent you. ontact us for a free consultation we’ll be happy to discuss your investment goals and go over our Buyer Representation Agreement with you. Once you become our client, we will utilize all methods available to help you find exactly what you’re looking for, whether it’s a trustee’s sale auction, short sale, REO (bank owned property), traditional sale or for sale by owner.
We offer our clients guidance based on our own experience successfully purchasing Placer County properties at trustee’s sales (both as flips and as rentals), REO’s, short sales, traditional sales and for sale by owner. We have also arranged seller financing on purchases and obtained private money loans on properties, which are available for those who don’t qualify for conventional financing (typically due to a previous foreclosure or short sale).
Real Estate Investor Client Services
Here are some of the services we provide for our real estate investor clients:
- Advice on which properties to buy to help you accomplish your real estate investment goals.
- Access to properties listed for sale (using a lockbox or making a showing appointment).
- Sales comparables to help determine market value on properties you wish to buy
- Checking public records for existing liens on properties being auctioned at Placer County trustee’s sales.
- Rehabbing recommendations for your properties, depending on it being resale vs. rental.
- Lease agreement, tenant placement and property management services for your rental
- Listing and marketing your property for sale on the MLS and on real estate websites.
Souza Realty in Placer County
Souza Realty specializes in Placer County, California real estate: foreclosures, trustee sales and Placer County lots & land. Bob and Leilani Souza are a husband & wife Placer County real estate team actively investing in real estate since 2001, flipping properties as well as holding them for rentals. The Souzas are also experienced in custom home development and are familiar with the entire home building process, from lot selection, floorplan design and permits to where to shop for the best deals on materials and supplies.
If you could benefit from our knowledge when it comes to investing in Roseville, Rocklin, Lincoln, Loomis and Granite Bay real estate or you’d like our guidance when it comes to buying a lot and building a home in Placer County, please contact us for a FREE consultation.
Bob Souza
Leilani Souza, CRS, e-PRO, TRC
Souza Realty (DRE #01262541)
925-513-3400 Bob
916-408-5500 Leilani
bob@souzarealty.com
leilani@souzarealty.com
Serving Southwest Placer County: Roseville, Rocklin, Lincoln, Loomis, Granite Bay
Follow Us on Social Networks!