Go to a San Diego Foreclosure Auction For 20% Off Your Next Home, But Beware

There are different types of San Diego foreclosureAbout 100 homes are typically scheduled for auction
homes that can be purchased. The first, and what I likeevery day of the week, Monday through Friday at
to consider the "real" auction is the Trustee Sale10:00 or 10:30am at the San Diego, El Cajon, and
auction of the property on the court house steps. ThisOceanside court house steps. Most homes will have
process represents the conclusion of a lenderstarting bids to high or get postponed by the lender,
foreclosing on a home and where the original ownertrustee, or because of a bankruptcy filing.
loses the property.But buying a San Diego foreclosure through a
The other San Diego Auction type is a derivative offoreclosure auction on the court house steps requires
the trustee sale auction because of how the starting100% of the purchase price and comes with no
bids amount are often set at the trustee sale auctions.guarantees about the properties condition, other liens
Typically the starting bids at the trustee sale auction isagainst the property, and any occupants of the
the amount owed to the lender, which is in manyproperty. In most cases homes bought through a real
cases more than the home is worth. In most cases theforeclosure auction are good deals, but do beware of
lender is the "winning bidder" and becomes the ownerthe many pitfalls before buying any of these
of the property for the total amount owed to them.properties.
The properties the lenders get back can end up beingThe primary things to watch out for are:
sold off through companies that auction off homes1) Other Liens: Other tax or loan liens against the
owned by lenders, developers, or others holding a lotproperty that might stay with property after you buy it.
of homes they don't want. These post-foreclosure2) Property Condition: The property's interior condition
auctions are more of a market sale and can evenis typically an unknown, expect some degree of
lead to prices higher than market when factoring indamage or repair necessity.
buyers fees charged by most of them.3) Anybody Home?: If the property has tenants,
The best place to find a deal on a San Diegoprevious owners, or squatters when you buy it who
foreclosure is at the "real" auctions, or trustee salewon't move out voluntarily then you'll need to evict
auctions. San Diego foreclosure homes sold at thesethem.
auctions occasionally have below market value4) Zoning and Building Codes: Make sure the property
minimum bids set on them that can be as much asis zoned for what it is and has the proper building
30% below market value. These particular San Diegopermits for any additions or improvements; otherwise
homes typically sell for 80% of the homes current realyou may have to pay to redo existing structures or
market value.components of the property to be in compliance.