“Naive Buyer at an Auction”

I got a call from someone looking for a mortgage on a home she was the successful bidder at an auction. She purchased with no contingencies of any kind, which were the terms of the auction. Unfortunately, this was a disaster in the making.

She purchased the property for $119,400. She has a $15,000 deposit at risk. Even though she has good credit, a good down payment, she cannot get access to the property to do an inspection or to have an appraisal done.

She told me that from what she saw the day of the auction, the interior needed some renovations, wasn’t sure if the furnace was working and on and on.

I could not assist her as I would need an appraisal done and to get that done, the appraiser would need to get into the property, which apparently was not possible.

Unless someone is a seasoned investor or represented by a knowledgeable real estate agent, a naive buyer should never buy at an auction.