Auction Home Buyer loses $102,000

Home buyers have no clue about Auctions.

Many Auction home buyers bidding on homes mistakenly buy a property burdened in additional debt that they are unaware of.

This is more common than you realize.

Many Auction home buyers think that the opening bid is the asking price.

Not so.

That is the starting price and the ending bid may be hundreds of thousands of dollars more.

Auction Home Buyer lost $102,000, no kidding.

Take for instance Auction home buyer “McK” (true story) who got caught up in the bidding war.

You know how that goes…you think you might loose that wonderful bargain (cough, cough) so on the spur of the moment you pay much more than you planned.

Auction home buyer “McK” got overly excited about buying a two story home in Windermere at the Auction. In Florida, Homeowners associations can foreclose on houses with unpaid association fees, but that does not erase other debt against the property. Most bidders think that with the winning bid, all debt against the property is wiped out.

Not so…

In this Home Auction:

The Home owners association sought to recover just under the $16,000 back debt that they were owed. Many bidders offered well over that price. Auction Home Buyer “McK” was the high bidder at $102,000. She was happy. Then she learned that her purchase only paid off the HOA debt.

Chase Bank still had a $400,000 lien on the house for which tax records showed was worth less than $300,000.

The Diet Pills made her do it…

Auction Home Buyer “McK” hired an attorney to undue the sale. The attorney’s filings claim that Auction Home Buyer “Mck” started taking a new prescription of phentermine diet pills, which caused her to to “make mistakes and alter her judgement”. He stated that his client would have never bid on the foreclosure if she have been clear headed.

The Attorney claimed that the side effects of the medications which she began taking that day included dizziness and difficulty sleeping. It is being debated, because side effects do not include impairment of judgement. Whole story here. Hmmm…wonder how this excuse will play out?

If you are a home buyer looking for a good home call us to chat about your needs. 407-539-1053