So what really happens at the Auction of  Hilton Head Island and Bluffton, South Carolina poperties?

I went to the Master in Equity Auction at Beaufort County Courthouse this past Monday.  There were over 100 properties being auctioned and do you know only one property was actually purchased by an individual.  All the other properties were purchased by the bank or lending institution holding the primary mortgage.

How it works is the bank has a number that they wish to get to cover the outstanding debt and any additional expenses.  The number the lending institution wishes to get is discounted and I would estimate it to be ninety cents on the dollar.  If no one bids or the bank outbids an individual the bank gets the property.   The bank then lists that property with a Realtor in the Multiple Listing System. 

In many cases the property is listed in the MLS for less than the bank wanted at the auction.  For example, a house on Shamrock Circle, Hilton Head Island went up for auction.  The primary mortgagee, Litton Loans, wanted $213,630.51 for the property at the auction.  No one purchased the property.  Two days later this property was listed in the MLS for $169,900, go figure.

It appears that unless the deficiency value is far below the actual value of the property it is difficult to find a deal at the auction.  You are better served to wait for the property to be listed use the services of a Realtor at no cost, ensure the property is free of encumbrances  and in most cases buy the property at a discount over the auction price.

Please contact me if I can be of assistance.

Yours truly,

Frank Moriarty

800.497.5889

843.384.7280 – cell

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http://www.FrankMoriarty.com

Frank@FrankMoriarty.com