USDA Forclosure sales

Discussion in 'Homesteading Questions' started by pcdreams, Mar 1, 2004.

  1. pcdreams

    pcdreams Well-Known Member

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    has anyone had any experience with these? I'm wondering how they work (I know they are auction). Are there any risk I should be aware of?

    I'm guessing forclosure was for either back taxes or non payment. The properties I'm looking at are in town (Bennington,VT rather small town). Really want acerage but at least we would be in the state :)
     
  2. Terri in WV

    Terri in WV Well-Known Member Supporter

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    Call the local agency the day before the sale to make sure it's still going to take place. You can call them earlier and see if it's possible to see the inside, sometimes they do. The 2 I've called about you couldn't see the inside and had to buy as is. From what I've been told when I've called very few people show up but in one case they did have 50 show for 1 piece of property. My dad had to go into the hospital a couple of weeks ago so I missed the sale I wanted to go to-3 br on 2 private ac. I found out later that only 1 person showed up and they got it for the asking price of $18,000.(I'm still kicking myself)

    You have to have 10% of the price the day of the sale, in certified check and the remainder will be due in about 3 weeks.
     

  3. pcdreams

    pcdreams Well-Known Member

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    Ah I was under the impression you could just place a bid via mail or such. Bit far to travel for an auction (1200+ miles) :)

    Of course if you knew what the opening bid was going to be it'd make things much easier. :)
     
  4. JWH123

    JWH123 Well-Known Member

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    My wife and I thought about one place. It was for sale through the USDA's Farm Service Agency, for default on a farm loan.

    The process in our case was that it was a 'sealed bid' auction. You write on a form how much you are willing to pay for the property, and mail it in. On the specified date, they open up all the bids. Highest offer gets it.

    They did have I think two days that the place would be available for walk-through.

    One thing I found that might be difficult, was that since the property was for sale from the Fed Govt, all lead paint would have to be 'mitigated' before a certificate of occupancy was given for the house. I don't know if that means the guys in the moon suits, or scraping and a fresh coat of paint.

    Good luck!

    We never put a bid on the place, but we see now that the new owner tore down the house and set up a cattle operation. It was 7 acres with 2 large barns, 3 silos, and milking equipment, and a 3 BR house.

    John
     
  5. Claudia in NY

    Claudia in NY Well-Known Member

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    how do you find out about USDA foreclosures? I've seen websites for different companies that will give you info. but you have to pay for it :rolleyes:
     
  6. CraftyDiva

    CraftyDiva Is anybody here?

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    Claudia in NY

    You can do it on your own
    http://www.resales.usda.gov/

    Or you can also have a real estate agent ( for a price) fill out the papers for you.
     
  7. RAC

    RAC Guest

    With any kind of foreclosure sales, be ready and willing to plunk down a large chunk of change for repairs. You can't always get in to see things, and often anyone being foreclosed on doesn't worry about damaging the property before leaving.... You might find out the flooring has holes in it, for example that people can step through.

    Some people really luck out and get good deals though.
     
  8. AngieM2

    AngieM2 Big Front Porch advocate

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    The real estate listing around here (N. alabama) that are foreclosures don't have light fixtures, heaters, appliances, basically anything that can be taken out is OUT> Also, many/most have a right of redemption for usually up to 1 year. If the original owner comes up with the cash to pay what they owe, they get it back and you and improveents are out. so if you decide to go this way, please check out whether the right of redemtion clause is in there.

    I've just looked at a couple around town...

    AngieM2
     
  9. rambler

    rambler Well-Known Member Supporter

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    I was going to say that also - there can be strings attached for up to a year, that the previous owner can reclaim it. Might make it difficult for you get a loan on the place, might be restrictions on what you can do to the house - stuff like that. Read the fine print & understand it.

    --->Paul
     
  10. Nette

    Nette Well-Known Member Supporter

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    Home foreclosure sales through USDA-Rural Development are usually handled by public auction. The amount you have to deposit with the clerk of court varies by state. In NC you have to put down 5%. Sales are for cash; no financing available at this point. Yes, the website is available, but that tool isn't being fully utiltized by the local offices. I would recommend that you contact the local office that services the county or counties you're interested in, and request that they put you on their "investors list." (They may call it something different, but tell them exactly what you're interested in.) People on this list are notified prior to any foreclosure sales. Also, in NC the bids lay open for 10 days; so if you can't attend the foreclosure sale, you still have 10 days to go to the clerk of court and upset the bid. Yes, there are definitely some deals out there, and yes, oftentimes the homes are in tough shape. But the minimum bids on those houses are low enough to make it a good risk. A funny thing though: When a property is advertised with a super-low bid (say , < $25,000), that always attracts a lot of bidders, and the final price on the house tends to be driven up. But a fairly new house, where the minimum bid is, say $40,000 +, won't attract a lot of bidders, and in reality, that might be the best deal.