Hi V,

This one is interesting.  I just spoke with the list agent who does these types of auctions in southern cal.  This is not an REO (Real Estate Owned) or short sale.

There will only be 2 showings for the property prior to auction.  The $300K is the suggested starting bid price.  The buyer can have no contingencies when they do bidding meaning all inspections need to be done up front.  No loan contingency either which I think is very risky since we are dealing with challenging lender issues & if there are any issues with getting a loan than a buyer risks losing their initial deposit (which will be at least $5000 for this property).

It sounds like there are also HOA issues.  The entire board was just unseated due to fraud issues.  They also have a special assessment coming through but the amount is unknown.  The current HOA is very high!!  $525/mo

If I didn’t mention, with condo buyers as part of their contingency period, I recommend that they hire Jacquie Berry for HOA analysis.

It’s really important that the financials/reserves are analyzed in order to determine likelihood of future assessments and if there are any other red flags.

Typically this service along with a contractor’s inspection & possible pest will run about a $700-1000 which a buyer pays for.

This type of purchase is probably better for an all cash buyer.  List agent also mentioned that most buyers don’t get inspections!!  This is really risky and not what I’d recommend unless a buyer was a contractor.

Last detail per the website: A BUYERS PREMIUM OF 4% WILL BE CHARGED TO THE BUYER AS A CLOSING COST, DUE AND PAYABLE AT CLOSE OF ESCROW. THIS FEE IS PAID DIRECTLY TO US AUCTION ADVANTAGE AND IS NOT INCLUDED IN THE PURCHASE PRICE.

Let me know if there’s still interest and I’ll request the available disclosures.