Foreclosure Auctions in Mobile – Just How Safe Are They?

When you make a purchase of home foreclosure at a Mobile, AL auction you\’re taking a huge risk with the potential for a lot of loss, mainly because you\’ve got no one to lead you through the purchase process. There\’s no escrow, no title report and absolutely no title insurance involved in buying a foreclosed home at auction.

In most areas, you can expect a foreclosure auction to be handled on a cash only basis, and every auction will require you to make some kind of cash deposit – often somewhere in the range of 20% (though it can be more.) You may have a month to come up with the remaining balance, but in some cases you\’re looking at less than 48 hours to turn over the remainder that\’s due otherwise you lose your deposit.

A major risk to investors buying through foreclosure auctions in Mobile is the fact that there is no warranty on the home that\’s being sold. This issue goes beyond maintenance of the home – if there is a lien on the property then that lien becomes your responsibility as the home owner.

These types of auctions, covering foreclosed homes in the Mobile, AL area, are typically done on a site unseen basis meaning you can\’t see or inspect the house. You\’ll receive no disclosure from the seller or auctioneer as to what kind of condition the home or building is in or what kind of neighborhood the property is in.

When you look at the big picture, you\’re at a high risk for getting burned with a foreclosure auction. Without the chance for inspection, you\’re taking a gamble on a home that may be in conditions that requires heavy investment in plumbing, roof, and electrical work to make the home livable and code-friendly.

Foreclosed homes at auction may still be occupied as well, which can lead to problems with tenants. As the new owner, you\’re responsible for eviction which can drag out for months in some cases depending on the court proceedings in Mobile and the backlog of cases. This can prevent you from doing necessary updates to prepare the home for sale.

Keep in mind that former tenants, who were the owners in many cases, may be bitter from the foreclosure event and could potentially vandalize the property before they leave – especially if you\’re evicting them.

If you\’re working toward buying a home for investment, the best option is to look into properties suffering foreclosure. Mobile offers a variety of these types of homes, and if you deal with a professional realtor you can skip all the problematic issues that come from auctions.

Discover how to buy homes for thousands below market value with a Mobile foreclosure. Gary Lambert Jr. is a seasoned real estate associate broker that can help you find the perfect home in a Mobile foreclosure. Find out how today.

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