Wake County Foreclosure Auctions

Chatting about the Hasentree foreclosure auction on March 20, reminded a couple of us of all the things that can befall a Buyer at the foreclosure auctions at the Wake County Courthouse in Raleigh, NC. It is basically a matter of paying your money and taking your chances.

We agreed that a Sheriff's Deed does not really give the Buyer more than a claim with few assurances. The property may have title issues, IRS liens, easements and encroachments, deteriorated structures, and serious environmental issues.
Unless one is very diligent, any of these problems may exist, without any recourse for the Buyer. Another issue, often overlooked, is the possibility that the home may be occupied. The original owner or a tenant may be living there, and the successful foreclosure auction Buyer will have to deal with that.

If the home is purchased as an investment, it may be easy to negotiate a suitable lease with a tenant, or even the former owner. But if the home is intended as a primary residence, the Buyer must be prepared to follow through with an eviction, if such action is required. This may mean having the Sheriff remove a family or elderly people from the home under extreme duress. It doesn't happen all the time, but before buying a property at the courthouse, the smart Buyer will include occupancy status in his homework.

What can a real estate agent do to help the courthouse foreclosure buyer? Not much. There really is no representation role to consider. It is a matter of doing a lot of homework on many failed purchases before the 'great deal" manifests itself. And a lot of other scavengers are also seeking that deal.