Concluding risky real estate deals at Las Vegas foreclosure auctions
Las Vegas foreclosure auctions properties, as well as short sales, are sold as is. Depending on the type of the auction, disclosures and warranties could be waived and not given to the buyer.
However, the fact that these properties are sold as is doesn’t mean that you have to buy them as is. Ask us how.
Doing due diligence before buying foreclosures or short sales
Las Vegas real estate auction companies put the due diligence material such as CC&Rs (Covenants, Codes, and Restrictions enforced by the applicable home owner’s association (HOA), preliminary title, and a purchase contract and other due diligence material on their website. Buyers are advised to read all pertinent due diligence information prior to bidding.
Financing a mortgage prior to bidding at Las Vegas foreclosure auctions
If you don’t have cash, auction companies require you to be at least pre-qualified before they allow you to bid at the auction. If not, they have mortgage officers to pre-qualify you.
If you haven’t followed our home buying tutorials and have an auction company partner finance you, you have missed the opportunity to shop for the best mortgage rate and terms. You are locked into one lender at the bidding time (making an official offer). The company may be paid a referral fee from the on-site lender at your expense.
When you get a mortgage, annual percentage rate (APR) and other loan origination fees impact your bottom-line and monthly payments. Obtaining a mortgage that charges you higher interest rates or loan origination fees can wipe out any discount on the property.
The final price doesn’t include financing charges, fees, and closing cost. Buyers are expected to pay a commission (premium) to the auction company in addition to the amount of their winning bid. For example, 5% of the final bid price will be added to your final bid amount to arrive at the final sales price.