In the pages of this Scottsdale Real Estate Blog I have talked freely about the “cartel” of investors and companies that routinely buy foreclosures on the courthouse steps. And why newcomers to the process often feel like they are swimming with sharks.
Now The Arizona Republic’s real estate reporter, Catherine Reagor, has exposed a little known way insiders are getting even better deals on auctioned homes — through “drop bids.” Rather than explain the process here, I am offering a link to her article, which everyone who is planning on purchasing an Arizona foreclosure on the courthouse steps ought to read before showing up with their $10,000 cashier’s check and high hopes.
If you are wanting to buy a home for yourself, rather than to flip, one of the best ways to get a great deal is to let the foreclosure auction happen and, when there are no bidders, wait while the bank takes it back and then brings it to market. They almost always drop the price tens of thousands below what they hoped to get for a payoff.
Better yet, ask me for a list of foreclosures that fit your budget and you’ll know the minute a potential home hits the market. That’s the beauty of multiple listing service auto alerts. You will always be one of the first to know.
Here’s Catherine’s article. Call me when you want a Scottsdale real estate agent who is truly on your side.
