Auctions

Rig The Bid

by brian on April 1, 2012

Many counties in Florida have their foreclosure auction online.  This saves time, makes for easier filing and streamlines the process.  Last year I had the opportunity to use the auction method and found the process very user-friendly.

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We had a couple of foreclosure cases that were one day apart.  So about a week before the auctions, I set up an account with the auction company that services Polk County – where the foreclosure sale was being held.  The reason I did it was because I realized that if we would take a lower price for the property than the amount of the final judgment, we could place a maximum plaintiff’s bid to create a ceiling on the bidding where we would be out and the property would be sold to a different buyer.

HOW IT WORKS

Our final judgment was in the amount of $18,000 and some change.  With the real estate market down and the impact fees the county was charging to improve vacant land, the real value of the property was around $8,000 to $9,000.   So I placed a maximum plaintiff’s bid at $8,950.  The bid was still too high; however, it was a great option for us.   We ended up being the high bidder and got the property back.

THE RESALE

Because we had developed the property in the early nineties and had sold it with owner financing three other times, our basis was very low. I put the property back on the market at $5,990 with a low down payment and owner financing.  I resold it in less than 30 days.  Now it back in the black and is good loan for us.  The fourth time is always a charm.

THE AUCTION COMPANY

The auction company for Polk County is:

http://www.realauction.com/

877-361-7325 extension 505

If you’d like to set up an account as the plaintiff or as a buyer online, you can do both.

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