Foreclosure auction could yield bargain home

Part 2: Profit opportunities during foreclosure

The real estate event of the summer
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(This is Part 2 of a three-part series. Read Part 1 and Part 3.) PROFIT OPPORTUNITY #2 -- BUY FOR CASH AT THE FORECLOSURE SALE. If the house isn't sold or refinanced during the pre-foreclosure reinstatement period, it will go to either a court judicial sale or a non-judicial trustee's sale. This can be a superb profit opportunity to buy at the foreclosure auction to wipe out the junior loans and liens (except IRS liens). However, if there are unpaid property taxes, they are never wiped out. Purchase Bob Bruss reports online. EXAMPLE: Suppose you are considering buying a house worth $350,000. It has a $150,000 defaulted first mortgage, which is going to foreclosure sale; a $50,000 second mortgage; a $35,000 mechanics' lien; and unpaid property taxes of $3,000. The lender's opening bid will be $150,000, plus costs. If you bid $150,001 and there are no other bidders, you just bought a tremendous bargain subject only to the $3,000 unpaid property taxes. The $50,000 second mortgage an...