INVESTING IN POST-FORECLOSURE (TRUSTEE’S SALE) PROPERTIES
Quick Page Index
- 1 INVESTING IN POST-FORECLOSURE (TRUSTEE’S SALE) PROPERTIES
- 1.1 FRIENDLY ADVICE WHEN INVESTING IN PROPERTY PURCHASED AFTER A TRUSTEE’S SALE
- 1.1.1 Investing in this type of property is truly “caveat emptor” (buyer beware).
- 1.1.2 When advising the potential investor/purchaser I ask them to analyze their situation using good business principles.
- 1.1.3 I also warn the potential investor/purchaser that selling properties in this “post-trustee sale” process is a fad.
- 1.1.4 Make sure you know the rules and who you are dealing with.
- 1.1.5 Question whether or not the laws governing the sale of real property are always complied with.
- 1.1.6 Is the seller making all the required disclosures – condition, title, environmental, possession, etc?
- 1.2 OTHER WARNINGS FROM AN EXPERIENCED REAL ESTATE INVESTOR
- 1.1 FRIENDLY ADVICE WHEN INVESTING IN PROPERTY PURCHASED AFTER A TRUSTEE’S SALE
So you still want to “give it a try”. Then make sure you know the rules and who you are dealing with. I suggest that the potential purchaser check out the person or entity offering the properties. Are they licensed? Are they filing the appropriate Deeds conveying the property? What is their reputation? Do they have complaints filed with their licensing agencies? What does the Better Business Bureau report? Do they have several references from others who have purchased properties in the past few months? Make certain these references are not from those related to the sellers.
These disclosures must be in writing and signed by the proper party. Many people try to avoid personal liability through the use of entities. Make sure that you get written, personal guarantees from both the entity and the person you are dealing with. After all, you are relying on the word of person making the assurances, not their corporation. If the seller refuses to honor the law governing the sale of real property or will not offer some type of written guarantee then look for someone who will.
Sometimes it is very difficult to find out who is related to whom and how people or entities are licensed. Check the Arizona Attorney General’s Office, Arizona Corporation Commission, Arizona Department of Financial Institutions, Secretary of State, and the Arizona Department of Real Estate and their web site registration. Check the Internet for comments and/or complaints. Most of these scams operate like a pyramid scheme. The first few folks win, but everyone in the middle or at the bottom will lose. If it sounds “too good to be true” it is. Trust your gut.
