home, or in its legal status, be greater than you thought they might be. Even the best-kept home can harbor serious problems within its walls. Buying A House At Auction FAQs Here are some common questions about buying a house at auction, but make sure you research the specific auction you are considering. What If I Can Buy The Home I Want By Paying Off Second Liens? If a homeowner has defaulted on a second lien, the first lien for the primary mortgage is probably not far behind. Your purchase will always be subordinate to the first lien, which could foreclose and wipe out all subordinate liens. There are sophisticated investors who know how to make money in these situations, but unless you’re one of them, you are best off forgetting you ever saw the listing. Can I Get Help From A Real Estate Agent? You might, if you have a long-standing relationship with one. The problem is that real estate agents do not make commissions on auctioned properties. If you know an agent who is willing to help you anyway, they can pull comparables in the area, learn about the property’s history, and even help you get a preliminary title report. What If I Find The Home I Bought At Auction Is Simply Not Worth Renovating? It happens. Even the most experienced investors get burned at auctions. It’s simply not possible to know all that is wrong with a property before you purchase it, even if you’ve had the opportunity to conduct a thorough home inspection. If you purchased the property in your own name, as opposed to purchasing it as a business asset, you’ll be on the hook for
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