Dan Tracy of the Orlando Sentinel wrote an interesting article today on foreclosed homes selling for $100 at public auctions held at the Orange County Courthouse. Even homes in upscale communities like Keene’s Pointe and Lake Butler Sound are selling at these too good to be true prices.
He points out the normal person off the street has no chance of getting one of these properties because the banks flex their bidding muscle and scare off other bidders. It’s just a way for the banks to lower their tax obligation.
The banks intend to sell the property as close to the mortgage as possible or something close enough.
Another thing to consider is that the federal government forgives any and all liens to financial institutions when these properties are purchased at auction. They’ve been doing this since the Great Depression to protect the stability of financial markets in this county.
So even if you luck out and outbid the bank when they’re sleeping, you may be buying yourself into a bunch of liens. Now liens are public record and should be recorded, but the government doesn’t guarantee they have them all recorded so there could be some hidden liens.
It’s definitely an interesting system we’ve got here. Perhaps it’s fair or perhaps not. What do you think?