Real Estate Foreclosures In Alameda County California – Tax Foreclosures

October 13, 2010

Timing is a major key to being successful in Real Estate. If one is able to buy property when it is being sold below market it can not only save you thousands of dollars but also originate you thousands of dollars. Whether you are a short term investor or long term investor in Right Estate, buying foreclosures is a good method to make a profitable chunk of change. Foreclosure is when a creditor repossesses the collateral or property that the loan is against because the borrower has defaulted in their payments.

If the borrower does not cure the default the property will eventually be auctioned and sold at a Trustee’s Sale. In California for Alameda County the foreclosure sales are conducted at the bottom of the Courthouse steps which is located at 1225 Fallon Street in Oakland. The seek of the sale dates are published in the newspaper where the property is located. You can find the notices in the legal notices section of the newspaper.

If you are unusual to the foreclosure business and you already haven’t done so it would be a profitable idea to attend the auction and get the feel of how the auction works. Also you should attend a class on foreclosures to learn the process and understand the risks that are associated with the process. Sometimes local Title Companies will host these seminars with a guest speaker. At the auction you will need to have a cashier’s check from a bank if you are going to narrate on any property.

The advantages of buying these properties is that you can buy them at a lower price. For example lets say there is a property with a fair market value of $500,000. Let’s say the owner owes $350,000 on the 1st mortgage and the 1st mortgage lender is foreclosing on the property. Let’s say it sells for $375,000 at the auction. That means there is 25% equity in the property. If you had purchased that property you could retain it or sell it. There could be costs involved with selling and sometimes you may have to evict the occupants and fix up the property but if done right one could get a 10% or higher return on their investment.

Before bidding you should do all your homework. It is very vital that you check all the liens that are against the property. If you are bidding on a property where the senior trust deed holder is foreclosing that means the junior trust deeds will be wiped out unless the property should happen to sell for more than what the total liens that are owed. There are other liens that may take priority like state tax liens. These will be inherited with the property which means you have to pay. There are also times that a property, which has no access such as a lot, may be auctioned or a property where you are not allowed to build. It would be good to contact the city or county to inquire about any issues which may affect the usage of the property.

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