Posts Tagged ‘Tennessee Foreclosures’

Buying Tennessee foreclosures for sale at the courthouse has its disadvantages, especially if the investor does not know what he is doing and has not conducted proper research. There is a big cash outlay required for this method of purchase and often cash or certified checks are needed on the day of the sale in order to qualify to bid. In some instances the entire amount will have to be paid within 30 to 90 days. Some states only allow you a matter of hours to pay the full amount and this involves great risk.

It might not be possible for the investor to view the property prior to sale, and this means that there is no chance of assessing damage to the property and repair costs. This in itself will hinder the ability of the investor to determine a market value and what their maximum bid should be capped at. It also makes it incredibly difficult to determine what the profit margin on the resale of the property will be.

Successful bidders who purchase Tennessee foreclosures for sale at the Sheriff’s sale might have to evict tenants or even the previous homeowner. This can take several months to effect and will interfere with any plans to repair and resell the property quickly, eating into any profit that might be envisaged. There is an increase in carrying or holding costs. There might also be land use problems and one way of avoiding buying a problem property at a Sheriff’s sale is to note if the lender is bidding for the same property. If the lender does not bid, it is a pretty good rule of thumb that the investor should also not bid.

The failure to conduct good research concerning a property may lead the investor to over bid for it. Often properties are bought at the Sheriff’s sale for far more than they are worth, but there are also instances when the investor might land a true bargain. These instances generally occur when the investor has research the property fully and knows exactly what they are doing. “Auction fever” has lead to the downfall of even the most successful of investors. This is the impulse to bid and over bid in the excitement of the moment. The auction environment is very competitive and an investor must keep their head in order not to get carried away and avoid losses.

One of the most important concerns of the investor who wants to purchase Tennessee foreclosures for sale at the Sheriff’s sale, would be liens or judgments over the property. Anything that clouds the title of the property becomes the problem of the new owner. This is not necessarily the case for the lender who purchases the property on auction, he is the major lien holder and therefore his debt eradicates all others. But for the investor, it could mean major problems. Junior lien holders would have to buy out senior liens and bid higher in order to gain possession of the property.

Foreclosures in Tennessee Top Counties

• Shelby County
• Davidson County
• Hamilton County
• Knox County
• Rutherford County
• Search Foreclosures by State

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