Court Ordered Sale

[GordIng]

Does anyone have advise on writing an offer on a court ordered sale? From what I understand its a schedule A as is where is etc.. My realtor says that they will allow a building inspection which is a good thing. Has anyone written any other conditions in the agreement which has been accepted by the courts?

 

[Thomas Beyer]

The judge is not a real estate expert. The cleaner the offer, the best chance you will get it. Ideally in cash, no condition.



If you must have a condition it should be very short.



Thus, you have to have some knowledge what a great deal looks like as it is sold "as is, where is" with some times little information available. Sometimes there is a scheduled walk through. Sometimes there is a building condition report available.



Thus, you must be able to value an asset with all its deficiencies, price those deficiencies and put a bid in that makes sense. You also need the ability to close quickly, without a mortgage or one that you can get very quickly on an asset with deficiencies.



Frequently, you will compete with experienced developers that fix assets themselves, know the market very well and pay cash.

 

[2Beers4Bob]

I have purchased two rental properties before. Both were foreclosures. Both had the financing fall through at the last minute. Luckily they were on the cheap side, and I was able to come up with 100% cash to get the deal done, and get a mortgage after completion, but it was quite stressful. So, my advise would be to make sure your financing is rock solid before removing subjects.



The problem with foreclosures is that subjects must be removed prior to setting a court date. So, you would need an inspection, appraisal, etc. before getting a court date, and from my understanding, your offer in court has to be subject free.



On your day in court you may not even get the property, as I was previously outbid, and I have also previously outbid someone else in court. So, your hard earned money on an appraisal may go to waste if you aren't the highest bidder in court.