Foreclosed Second Home Auctions Attract Buyers With Nerves Of Steel

Foreclosed Second Home Auctions Attract Buyers With Nerves Of Steel

You might expect that the second-home market is rich enough to be immune to foreclosures, but you would be wrong. As has been widely reported, the number of repos is small but rising on the East End, and quite a few properties upstate, on the Jersey shore, and on the North Fork are slated for auction. As it turns out, "people are more willing to walk away from them" than from primary homes, says Rick Sharga of RealtyTrac.com, which lists foreclosures.

If you're on solid fiscal ground, a bank auction can be an opportunity--but it's not one for the risk-averse. (Or if you're the conscience-stricken type: too many sad stories.) If you're bidding at auction, you can't tour the house. Your best info is going to come from the foreclosure lists and reports available from PropertyShark.com, RealtyTrac, and Nyforeclosures.com. PropertyShark CEO Bill Staniford also recommends drive-bys, chatting up neighbors, and hiring local brokers or lawyers to make sure there are no hidden surprises like extra liens.

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