Quote:
Originally Posted by Wyman
Would you mind giving some details about your experience?
How much did the liens cost?
What info did you get ahead of time about the properties?
...From where?
Did you go view the properties?
How did you select which you'd bid on/purchase?
I spent $49,000 on the liens. The auction took 2 days, in which they sold over 3,000 liens.
So doing any indepth research was difficult. I did not visit any of the properties before hand, but I live in the county and am familiar with the neighborhoods and areas.
The only thing I had before the auction was the newspaper giving notice to each property owner, with the legal description and amount owed.
I also purchased the list from the court house for $10, but didn't receive it until the first day of the auction.
As I said, the auction lasted 2 days. The second day I was able to do a little more in regards to preparation.
This being my first auction, I was completely unfamiliar with the procedure, except what I could gather from books and online.
Mississippi is a bid up state, meaning that the property is offered, and whoever bids the most gets the lien.
However, in order to speed up the process, all overbids had to be in $100 increments.
But before the auction began, a fellow stood up and asked everyone to agree to a "round robin" format, where they start at the front of the room, and each property is offered to one person, who can accept or decline the property. If declined, that person loses their turn and it's offered to the next person in line.
All liens under $100 and over $1,000 (the first day, $1,500 the second) were not included in the round robin.
Everything over $1,000 (then $1,500) was up for bid, with the usual overbid being 5%-8%.
Regarding the round-robin liens, I'd say over 90% were accepted by the first person.
On the less than $100 properties, everyone interested would hold up their paddle and they would randomly pick a number.
On the over properties, bidders would raise their paddle and announce "$100",
"$200" and so on. If more than one bid the same, they would pick a paddle at random.
After the first day, I eliminated buying anything under $300, and focussed on properties over $1,500 that I could get.
I was able to go through the second half of the properties the night before and circle the liens I was willing to overbid on.
Basically eliminated most businesses and undeveloped lots.
Focused on improved property, especially homestead property.
I ended up purchasing 9 liens for $100 overbid, and 2 properties for $200 overbid.
In Mississippi, the amount overbid is not returned, and you do not earn interest on it.
I'd say there were around 100 bidders the first day, and 80 the second.
The overbidding early the first day was much more fierce than later.
The way the auction is set up (on the last Monday of the month), you are practically assured of not having any redeem the first month.
So you can assume that on the properties where you pay a premium, you'll get at least 2 months interest (3%).
Out of the 50, none redeemed the first month, 2 the second, and 2 the third.
None of the properties I overbid on have redeemed yet.